• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Beta (β) refers to the probability of Type II error in a statistical hypothesis test. Frequently, the power of a test, equal to 1–β rather than β itself, is referred to as a measure of quality for a hypothesis test. This entry discusses the role of β in hypothesis testing and its relationship with significance (α).

Hypothesis Testing and Beta

Hypothesis testing is a very important part of statistical inference: the formal process of deciding whether a particular contention (called the null hypothesis) is supported by the data, or whether a second contention (called the alternative hypothesis) is preferred. In this context, one can represent the situation in a simple 2 × 2 decision table in which the columns reflect the true (unobservable) situation and the rows ...

Loading
  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles