Question

How do you calculate type 1 error and type 2 error probabilities?

Answer 1

Hint: We first express the concept of type 1 error and type 2 error probabilities. Then we state the theorems for calculating the probabilities.

Complete step by step solution:
When the null hypothesis $(H_0:\mu ={\mu }_0)$ is true and we reject it, we make a type 1 error. The probability of making a type I error is $\alpha$, which is the level of significance you set for your hypothesis test. An $\alpha$ of 0.05 indicates that we are willing to accept a 5% chance that we are wrong when you reject the null hypothesis.
When the null hypothesis is false and we fail to reject it, you make a type 2 error. The probability of making a type II error is $\beta$, which depends on the power of the test
The formulas for finding the probabilities are
Type 1: $$P\left(\text{rejecting }{H}_0|H_0\text{ true}\right)$$ and Type 2: $$P\left(\text{accepting }{H}_0|H_0\text{ false}\right)$$.

Note:
To lower this risk in type 1, we must use a lower value for $\alpha$. However, using a lower value for alpha means that we will be less likely to detect a true difference if one really exists. We can decrease your risk of committing a type 2 error by ensuring our test has enough power. We can do this by ensuring your sample size is large enough to detect a practical difference when one truly exists.