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In the final round of a TV game show, contestants have a chance to increase their current winnings of $1 million to $2 million. If they are wrong, their prize is decreased to $500,000. A contestant thinks his guess will be right 50% of the time. Should he play? What is the lowest probability of a correct guess that would make playing profitable? 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 managergathers information by trying to verify various claims on resumes, 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?
When Mohammed was hired by Pomico, Inc., he signed the following agreement, Upon termination of my employment with Pomico, I decide not to work for a competing company within 30 miles of Pomico's headquarters for one year
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which measures should he take to ensure that he uses the whole amount to investment as an upcoming entreprenuer without failing but succeed at every level profit?
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