💼 Pre-MBA Exam Prep

A Type I error in hypothesis testing occurs when:

A Failing to reject a false null
B Rejecting a true null hypothesis (false positive)
C Accepting the alternative hypothesis correctly
D Collecting insufficient data

✓ Correct Answer: Option B

Type I error (alpha, α): rejecting H0 when it is actually true. Probability equals significance level. Type II error (beta, β): failing to reject H0 when it is false (false negative).

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