Any selection decision can lead to different outcomes. Which of the f…

The correct answer is Option (3) → Accepting those who ultimately perform poorly on the job is called a reject error.

Option (1) A decision is correct when an applicant was predicted to be unsuccessful and would perform accordingly if hired. — True. The firm has successfully rejected this applicant.

Option (2) A decision is correct when an applicant was predicted to be successful and proved to be successful on the job. — True. The firm has successfully accepted this applicant.

Option (3) Accepting those who ultimately perform poorly on the job is called a reject error. — False. Accepting a person who later performs poorly is an accept error. A reject error is turning away a candidate who would have done well.

Option (4) Errors in selection decisions can be significant and can result in costly mistakes. — True. Wrong decisions can lead to costly mistakes.

Note: The four outcomes of a selection decision are named only in a small box beside the main text. Six lines of a box gave a full question here, so do not jump over boxes.