COLLAPSE Type 1 and Type 2 Errors: An Application from HR, Hiring
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Type I and Type II Decision Error Costs
The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on resumes, but some doubt about fit always lingers when a decision to hire or not to hire is made.
- What are the Type I and Two decision errors costs?
- Which decision error is more likely to be discovered management?
- How does this affect the HR manager’s hiring decisions?
PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE.
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