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The type one error which involves rejecting the proposing in making a decision for the firm and hence accepted has the costs of maybe not properly implemented and hence affecting the business performance. It may have been the wrong decision if the planning and taking the decision was done hurriedly without giving thoughts.
The type II error which is rejected after accepting the proposition during the decision making may have been the correct idea and the management may come to regret having implemented in the wrong decision (Piava, 2013). This will involve incurring unnecessary costs which will lag the business behind.
The CEO is more likely to discover type I error since it's taken and on implementation and hence having the opportunity to observe it. The HR department will be in a dilemma on what candidate to pick if they all have qualifications.
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