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 appicants all seem to bring differnt 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 decisions to hire or not is to be made. What are the type I and II decision error cost? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager's hiring decisions?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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17-6 Hiring 

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 appicants all seem to bring differnt 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 decisions to hire or not is to be made. What are the type I and II decision error cost? Which decision error is more likely to be discovered by the CEO? How does this affect the HR manager's hiring decisions?

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