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15 Math Concepts Every Data Scientist Should Know
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We explained in the first section of this chapter that the significance threshold
is something we set, controlling the rate at which we get false positives. More correctly, the value of
is the probability of falsely rejecting the null hypothesis. It is also called the Type-I error rate (i.e., the rate at which we make errors of Type-I). The term “false positive” tends to be used more when we assess accuracy after an event, when we are comparing to some known ground truth (i.e., what the correct decision or classification should have been). Type-I error is a term used more when the null hypothesis is falsely rejected and when discussing a hypothesis test a priori (e.g., when we are designing it). The difference between the terms “false positive” and “Type-I error” is subtle, and for the most part, we ignore it and use the terms interchangeably.
But what about false negatives? What is the hypothesis test...