Give your assessment of the relative costs of Type I and Type II errors in the following situations where a decision is pending: a. A new synthetic feed additive is….
What could Marco have done differently?
Marco broke into a cold sweat as soon as he finished reading the e-mail. He realized that if it were made public, it would mean the end for the CEO of Chemco, the senior managers, David Collins, and probably anyone assigned to the Chemco case. What the heck was he supposed to do now? Tell David Collins? Pretend he hadn’t found it and shred it? Should he go public with it or send it anonymously to the lawyers for the Chemco shareholders?
He started imagining the consequences of each of those actions and decided that anything that involved his looking for a new paralegal position wasn’t a good choice. He also thought about the Enron case and how long it had taken to get the two senior officers, Ken Lay and Jeff Skilling, into court, with no money left at the end of it all to return to shareholders who had lost their life savings when the company collapsed.
“it’s just not worth it,” Marco thought. “And anyway, who would pay attention to a rookie paralegal?” With that, he took the piece of paper and placed it into the shredder
1. What could Marco have done differently?
2. What do you think will happen now