Question

1) 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)

2) A manufacturer of a new medication on the market for Alzheimer's disease makes a claim that the medication is effective in 65% of people who have the disease. One hundred eighty individuals with Alzheimer's disease are given the medication, and 115 of them note the medication was effective. Does this finding provide statistical evidence at the 0.05 level that the effectiveness is less than the 65% claim the company made? Make sure to include parameter, conditions, calculations, and a conclusion in your answer.

Answer 1

rGiven that null hypothests = 53 0.53 lOO altenate hypothests: a.53 Tyre I eror:ie to reject the null pothesis and 'concude that there is racial discrimination while in actual there no radical discvimination TyeⅡ eroy is fail to refect that ttere丘a radial dkor.m)ination Mlile in actual there i yadical ciscrimination hj.

C) os sajectiom area will ncrease. di foer a the test will trcrease au standard erYor 다 the test ill decreate akicd b tun ustu viden tho effect S