Subramanium Topic test

[derswap07]

Hi All,
Q # 6 is confusing for me. The para relating to the Q says:
” Finally, Radia asks Subramanium if there are any issues to be considered regarding manager continuation policy. Subramanium answers that there are two types of mistakes you can make:
 one mistake is to fire (or not hire) a manager with positive value-added management;
 a second mistake is to keep (or hire) managers that provide zero value-added”
Q 6
Subramanium’s answers to Radia’s question regarding manager continuation policy best describes a Type I error for:
A. both statements.
B. the second statement and a Type II error for the first statement.
C. the first statement and a Type II error for the second statement.
Which one is right?

 

[cokemicho]

derswap07 wrote:
Hi All,
Q # 6 is confusing for me. The para relating to the Q says:
” Finally, Radia asks Subramanium if there are any issues to be considered regarding manager continuation policy. Subramanium answers that there are two types of mistakes you can make:
 one mistake is to fire (or not hire) a manager with positive value-added management;
 a second mistake is to keep (or hire) managers that provide zero value-added”
Q 6
Subramanium’s answers to Radia’s question regarding manager continuation policy best describes a Type I error for:
A. both statements.
B. the second statement and a Type II error for the first statement.
C. the first statement and a Type II error for the second statement.
Which one is right?

As I remember Ho is that the manager adds no value.
Type I error is to wrongly reject Ho
Type II error is not to reject Ho
So then, answer B is correct, right?
Jorge

 

[ajb1]

^flipped this around. Answer is C
Statement 1: Type I error
Statement 2: Type II error
You really only need to remember 1 of the 2. How I remember the difference: Type II you fire a good manager