Question

A company is sued for job discrimination because only 39% of the newly hired candidates were minorities or women when 47% of all applicants were minorities or women. Is this strong evidence that the company’s hiring practices were discriminatory? a) Is this a one-tailed or two-tailed test? b) In this context what is a Type I error? c) In this context what is a Type II error? d) Which type error would the company consider to be more serious? e) Which type error might job applicants consider to be more serious?

Answer 1

The research is a one-tailed test because the company won't be sued if many minorities were hired.

How to illustrate the research?

In the context, the type I error will be deciding the company is discriminating or not. The type II error will be deciding the company is not discriminating when it is.

The power of the test is the probability of correctly detecting actual discrimination. The type of error that the company consider to be more serious is the type I error.

In conclusion, the type of error that job applicants might consider to be more serious is type II error.

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