25. Equal opportunity A company is sued for job

Chapter 21, Problem 25

(choose chapter or problem)

25. Equal opportunity? A company is sued for job discriminationbecause only 19% of the newly hired candidateswere minorities when 27% of all applicants wereminorities. Is this strong evidence that the companys hiringpractices are discriminatory?a) Is this a one-tailed or a two-tailed test? Why?b) In this context, what would a Type I error be?c) In this context, what would a Type II error be?d) In this context, what is meant by the power of the test?e) If the hypothesis is tested at the 5% level of significanceinstead of 1%, how will this affect the power ofthe test?f) The lawsuit is based on the hiring of 37 employees. Isthe power of the test higher than, lower than, or thesame as it would be if it were based on 87 hires?