StatStuff is the only FREE source for complete Lean Six Sigma Training

  • Register
  • Login


The only FREE source for complete Lean Six Sigma training!

Alpha Risk

Search for dictionary terms (regular expression allowed)
Begin with Contains Exact termSounds like
All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term Definition
Alpha Risk

A formal measurement of the risk of a false positive defined for statistical tests typically during hypothesis testing. Alpha risks (a.k.a., Type I Errors or false positives) generally represent the amount of risk or error in yielding a false positive that you're willing to allow for any statistical test you run. In normal situations, 5% is a common amount of risk statisticians allow for false positive errors in their analyzed data. This means they're willing to accept that there's a 5% chance their data will yield a false positive result.  In high-risk situations (e.g., building weapons, healthcare, etc.) where precision and accuracy in the results are critical, a lower amount of risk is probably preferred; in those cases, it's not uncommon for statisticians to set an alpha risk level at 1% or lower.

This type of risk is also subtracted from 1.0 in order to calculate your confidence level.  So a confidence level of 95% simply means you're 95% confident in the statistical results, which likewise means there's a 5% chance or risk that you're wrong (or not as confident).  A judicial example of alpha risk would state this is the risk of convicting an innocent person. A statistical example would state this is the risk of saying a factor causes a difference when it really doesn't. A practical example would state this is the risk of fixing something that isn't broken.  Compare to Beta Risk.
Related StatStuff Videos: 
   -Section 6-Analyze Phase, Lesson #9 - Hypothesis Testing: Overview 
   -Section 6-Measure Phase, Lesson #15 - Statistical Process Control (SPC)

All A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Search the Dictionary of Lean Six Sigma Tools/Concepts

Search for dictionary terms (regular expression allowed)
Begin with Contains Exact termSounds like

Stop taking notes! Instead of wasting time taking notes, get the book with the complete LSS training content.

Learn how StatStuff can lean your LSS training program