Question: Refer to question 5. The MBA director could make two types of admission mistakes using DA. One mistake is to classify a student into the

Refer to question 5. The MBA director could make two types of admission mistakes using DA. One mistake is to classify a student into the weak category (and, therefore, not admit the student) when, in fact, the student belongs in the good category. We will call this a type I error. The other type of error (which we will call a type II error) is to classify a student into the good category (and, therefore, admit the student) when, in fact, the student is a weak student. Suppose that the MBA director considers a type I error to be twice as costly as a type II error. How does the classification rule change to accommodate these unequal costs of misclassification? What is the new classification rule?

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