Attempts

Average $\frac{?}{2}$

$4.$ Individual Problems $17-6$

The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so$,$ and the ap seem to bring different levels of expertise. For each applicant, the HR manager gathers information by trying to verify various claims on the candidate's r$$sum$,$ but some doubt about "fit" always lingers when a decision to hire or not is to be made.

Suppose that hiring an employee who is a bad fit for the company results in an error cost of $$900,$ but failing to hire a good employee result error cost of $$200$ to the company. Although it is impossible to tell in advance whether an employee is a good fit, assume that the probabilit applicant is a "good fit" is $0\mathrm{.}15,$ while the probability that an applicant is a "bad fit" is $1-0\mathrm{.}15=0\mathrm{.}85.$ Hiring an applicant who is a good fit, not hiring an applicant who is a bad fit, results in no error cost to the company.