:: Type I, Type II ::

In some educated places people look at national lottery games as a tax imposed on those who didn't learn statistics at the university. Venture Capital is all about statistics.

Let's go back to school.

When hypothesis testing there are two types of statistical error a researcher might make.

Type I - Falsely rejecting a true null hypothesis.

Type II - Falsely accepting a false null hypothesis

Obviously we would like to avoid both errors, but for some mathematical reasons it is not that easy. When one accepts too many hypotheses he accepts false ones. When one rejects too many, he rejects true ones.

End school.

Start Real life.

What most VCs are afraid of is error type I. Rejecting Chromatis or eXalink. They always look what other VCs are doing. Always afraid to miss the good one. So they make tons of errors of type II. The type they should really be afraid of - making the wrong choice and loosing money.

And they too pay the tax.

Cute.

Wadi Writer #1 (Gray)
wadilist@mail.com

P.S - I found one fund that is different. Follow this link, it is worth your time: http://www.bessemervp.com/people/anti/index.asp

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