Am I the only one or is the type I vs type II error distinction kind of arbitrary. One of the EOC questions talks about a manager getting fired because the company falsely thought he was an underperformer. The answer then says this is a type II error, which is defined as failing to acknowledge that he is an outperformer.
I could have just as well argued that this is a type I error, falsely assuming he is an underperformer.
So we should just memorize, that everything is expressed in terms of outperforming. Either:
we assume someone is an outperformer although he is not (type I)
we fail to acknowledge someoen is an outperformer (type II)