Manager Continuation Decision 2010, quality, management, control, likely

RoastBeef

Question 1:

type I and II error
Posted by: happyking02 (IP Logged)
Date: May 16, 2010 11:55PM

Suppose that all of a firm’s managers are outperforming the benchmark, some by a little, some by a lot. If the confidence intervals for a quality control charts in portfolio management were widened, what would the most likely effect be?

A) Type I error would become more likely and Type II error would become more likely.

B) Type I error would become less likely and Type II error would become more likely.

C) Type I error would become more likely and Type II error would become less likely.

Can u please explain? thanks!

Question 2:

type I or II
Posted by: cfasf1 (IP Logged)
Date: May 5, 2009 12:09AM

Suppose that a portfolio management firm has decided that the costs of hiring and firing managers are excessive. Which of the following would be their most appropriate course of action? The firm should:
A) tolerate more Type I error to reduce Type II error.
B) reduce both Type I and Type II errors.
C) tolerate more Type II error to reduce Type I error.



Edited 1 time(s). Last edit at Sunday, April 17, 2011 at 01:45AM by deriv108.