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...

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 resume, but some doubt about fit
always lingers when a decision to hire or not is
to be made. What are the Type I and II decision
error costs? Which decision error is more likely
to be discovered by the CEO? How does this
affect the HR manager’s hiring decisions?