A company is sued for job discrimination because only 5 % of the newly hired can

ID: 3058438 • Letter: A

Question

A company is sued for job discrimination because only 5 % of the newly hired candidates were minorities when 31 % of all applicants were minorities. Is this strong evidence that the company's hiring practices are discriminatory? Complete parts a) through c) below.

a) Is this a one-tailed or a two-tailed test? Why?

This is a one-tailed test because there is only one sample proportion.

This is a two-tailed test because all employees are either minorities or not minorities.

This is a one-tailed test because the company wouldn't be sued if "too many" minoritie were hired.

This is a two-tailed test because the lawsuit only claims the company is discriminatory, not how they are discriminatory.

b) In this context, what would a Type I error be?

A. A Type I error is deciding the company is not discriminating when, in fact, it is not.

B. A Type I error is deciding the company is discriminating when it is not.

C.A Type I error is deciding the company is not discriminating when it is.

D. A Type I error is deciding the company is discriminating when, in fact, it is.

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 discriminating when, in fact, it is.

B. A Type II error is deciding the company is discriminating when it is not.

C. A Type II error is deciding the company is not discriminating when, in fact, it is not.

D. A Type II error is deciding the company is not discriminating when it is.

E. There is no Type II error in this context.

Explanation / Answer