- \(\alpha\): this is the probability of false rejection of the null hypothesis. It’s the probability of making a type I error.
- \(\beta\): this is the probability of false acceptance of the null hypothesis. It’s the probability of making a type II error.
There are both parameters we fix, and then we design our experiment to ensure that the probabilities fall below the set threshold.
More explicitly, if we assume a null hypothesis, then the distribution of the mean \(\overline X\) will be something. We decide on a reject region