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  Which of the following statements are wrong?
  I             Type I error occurs when the null hypothesis is not rejected when it is actually false.
  II           Type II error occurs when the null hypothesis is rejected when it is actually true.
  III          Type I error occurs when the alternate hypothesis is wrongly accepted.
  IV         Minimizing the probability of Type I error maximizes the power of the test.
  A.         I and II
  B.         I and III
  C.         II and IV
  D.         I, II and IV
  Answer: D
  In hypothesis testing we accept the alternate hypothesis if the null hypothesis has been rejected. Type I error happens if the null hypothesis is rejected when it is actually true. Type II error happens if the null hypothesis is accepted when it is actually false. The power of the test is the probability of correctly rejecting the null hypothesis (when it is false), so minimizing Type II (not Type I) errors would maximize the power of the test.