The vignette says: Clark also asks Lancaster about the strict appraisal criteria used to evaluate the different managers employed by the Fund. Lancaster states, “The Fund is willing to risk firing good managers, a Type II error, in order to prevent retaining poor managers, a Type I error. But I would prefer if the Fund would relax the appraisal criteria.”
Q: If the Fund adopted Lancaster’s preferred appraisal criteria, the most likely impact would be an increase in: A. Type I error only. B. Type II error only. C. both types of errors.