Companies when setting up their complaint management policies worry about two types of errors: 

• Type 1 error (false positives): A fraudulent/frivolous/undeserving request is honored
• Type 2 error (false negatives): A valid customer request/complaint is declined.

 

Briefly explain with examples the type of companies/businesses that should be focused on preventing type 1 errors/mistakes, and the companies that should be focused on preventing type 2 errors. [you can, for example, consider different types of retailers or service businesses]

Answer rating: 100% (QA)

Type 1 errors false positives occur when a company mistakenly honors a fraudulent frivolous or undeserving request Companies that should be focused on ... View the full answer