A company is sued for job discrimination because only 27% of the newly hired can

Question

A company is sued for job discrimination because only 27% of the newly hired candidates were immigrants when 50% of all applicants were immigrants. Is this strong evidence that the company's hiring practices are discriminatory? Complete parts a) through below a) Is this a one-tailed or a two-tailed test? Why? A. This is a two-tailed test because the lawsuit only claims the company is discriminatory, not how they are discriminatory. B. This is a two-tailed test because all employees are either immigrants or not immigrants. C. This is a one-tailed test because there is only one sample proportion. D. This is a one-tailed test because the company wouldn't be sued if "too many" immigrants were hired. b) In this context, what would a Type I error be? A. A Type I error is deciding the company is not discriminating when it is. B. A Type I error is deciding the company is not discriminating when, in fact, it is not. C. A Type I error is deciding the company is discriminating when in fact, it is. D. A Type I error is deciding the company is discriminating when it is not. E. There is no Type I error in this context. c) In this context, what would a Type II error be? A. A Type II error is deciding the company is not discriminating when, in fact, it is not. B. A Type II error is deciding the company is discriminating when. in fact, it is. C. A Type II error is deciding the company is not discriminating when it is. D. A Type II error is deciding the company is discriminating when it is not. E. There is no Type II error in his context. d) In this context, what is meant by the power of the test? A. The power of this test is the probability of incorrectly determining the company is not discriminatory. B. The power of this test is the probability of incorrectly detecting nonexistent discrimination. C. The power of this test is the probability of correctly detecting actual discrimination. D. The power of this test is the probability of correctly determining the company is not discriminatory. e) If hypothesis tested at the 10% level of significance instead of 1%, how will this affect the power of the test? A. The power of the test will decrease because the level of significance increased. B. The power of the test will increase because the level of significance decreased. C. The power of the test will increase because the level of significance increased. D. The power of the test will decrease because the level of significance decreased. f The lawsuit is based the hiring of 63 employees. Is the power of the test higher than lower than, or the same as it would be if it were based on 25 hires? A. The power of the test is lower because the sample size increases. B. The power of the test is higher because the sample size increases. C. The power of the test is the same regardless of the change in sample size.

Explanation / Answer

a)

ANSWER: D. This is a one-tailed test beacuse the company wouldn't be sued if "too many" immigrants were hired

b)

ANSWER: D. A Type I error is deciding the company is discriminating when it is not.

C)

ANSWER: C. A Type II error deciding the company is not discriminating when it is

d)

ANSWER: C. The power of this test is the probability of correctly detecting actual discrimination.

e)

ANSWER: C. The power of the test will increase beacuse the level of significance increased.

f)

ANSWER: B. The power of the test is higher beacuse the sample size increases.

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