Question

A food distributor is being sued for racial discrimination because 12% of newly hired candidates are not white when 53% of all applicants were not white. You plan to use hypothesis testing to determine whether there is significant evidence that the company's hiring practices are discriminatory.

Part A: State the null and alternative hypotheses for the significance test. (2 points)

Part B: In the context of the problem, what would a Type I error be? A Type II error? (2 points)

Part C: If the hypothesis is tested at a 1% level of significance instead of 5%, how will this affect the power of the test? (3 points)

Part D: If the hypothesis is tested based on the hiring of 1,000 employees rather than 100 employees, how will this affect the power of the test? (3 points)

Answer 1

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