A company is sued for job discrimination because only 24% of the newly hired can

Question

A company is sued for job discrimination because only 24% of the newly hired candidates were immigrants when 54% of all applicants were immigrants. Is this strong evidence that the company's hiring practices are discriminatory? Complete parts a) through f) below.

a) Is this a one-tailed or a two-tailed test? Why? O A. This is a one-tailed test because there is only one sample proportion O B. This is a one-tailed test because the company wouldn't be sued if "too many" immigrants were hired O C. This is a two-tailed test because the lawsuit only claims the company is discriminatory, not how they are discriminatory O D. This is a two-tailed test because all employees are either immigrants or not immigrants b) In this context, what would a Type l error be? O A. A Type l error is deciding the company is discriminating when it is not O B. A Type l error is deciding the company is not discriminating when, in fact, it is not O C. A Type l error is deciding the company is discriminating when, in fact, it is C D. A Type l error is deciding the company is not discriminating when it is O E. There is no Type I error in this context c) In this context, what would a Type II error be? C A. A Type Il error is deciding the company is not discriminating when it is O B. A Type II error is deciding the company is not discriminating when in fact, it is not O C. A Type Il error is deciding the company is discriminating when it is not C D. A Type II error is deciding the company is discriminating when, in fact, it is O E. There is no Type II error in this context d) In this context, what is meant by the power of the test? O A. The power of this test is the probability of correctly detecting actual discrimination. O B. The power of this test is the probability of correctly determining the company is not discriminatory. O C. The power of this test is the probability of incorrectly determining the company is not discriminatory. O D. The power of this test is the probability of incorrectly detecting nonexistent discrimination. O E. There is no power of the test in this context. e) If the hypothesis is tested at the 10% level of significance instead of 5%, how will this affect the power of the test? O A. The power of the test will decrease because the level of significance decreased O B. The power of the test will increase because the level of significance increased O C. The power of the test will increase because the level of significance decreased. O D. The power of the test will decrease because the level of significance increased f) The lawsuit is based on the hiring of 47 employees Is the power of the test higher than than, ower or the same as it would be if it were based on 116 hires? O A. The power of the test is higher because the sample size decreases C B. The power of the test is lower because the sample size decreases O C. The power of the test is the same regardless of the change in sample size

Explanation / Answer

(a) C

(b) A

Type I error is Rejecting Null Hypothesis when it is True.

Here, Null hypothesis is company is not discriminatory

Alternate is Company is discriminatory.

(c) A

Type II error is not able to reject Null Hypothesis when it actually is False.

(d) A

Power of Test is being able to reject Null Hypothesis when it is False.

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