The research labs of a corporation occasionally produce breakthroughs that can lead to multibillion-dollar blockbuster products. Should the managers of the labs be more worried about Type I or Type II...

The research labs of a corporation occasionally produce breakthroughs that can lead to multibillion-dollar blockbuster products. Should the managers of the labs be more worried about Type I or Type II errors?

Modern combinatorial chemistry allows drug researchers to explore millions of products when searching for the next big pharmaceutical drug. An analysis can consider literally hundreds of thousands of compounds. Suppose that none of 100,000 compounds in reality produces beneficial results.  How many would a compound-by-compound testing procedure with nonetheless indicate were effective? Would this cause any problems?