Equal opportunity? A company is sued for gender discrimination because only 41% of the newly hired candidates were women when 62% of all applicants were women. Is this strong evidence that the company’s hiring practices 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 significance instead of 1%, how will this affect the power of the test?

f) The lawsuit is based on the hiring of 42 employees.

Is the power of the test higher than, lower than, or the same as it would be if it were based on 92 hires?