Type 2 Error

Error
An 'error' can refer to a variety of mistakes or misjudgments across multiple fields, including general actions, legal proceedings, computer systems, and statistical analysis. Understanding the context in which an error occurs is crucial for addressing and mitigating its effects.
Type 2 Error
In statistical testing, a Type 2 Error occurs when the null hypothesis is not rejected even though it is false. This error, also known as a false negative, has significant implications in hypothesis testing as it can lead to incorrect conclusions.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.