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Question Description

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 various claims on resumes, but some doubt about it always linger when a decision to hire or not is to be made:

* What are the Type 1 and 2 decision error costs?

* Which decision error is more likely to be discovered by the CEO?

* How does this affect the manager's hiring decisions?

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