Question
2. Because of further employee complaints, the ACLU becomes involved in a discrimination lawsuit against ACME NHT Inc., accusing you of discriminatory promotion practices within
2. Because of further employee complaints, the ACLU becomes involved in a discrimination lawsuit against ACME NHT Inc., accusing you of discriminatory promotion practices within your sales force. You immediately ask your HR Director for the distribution of your total sales force by hair color (expressed as percentages). She provides you with the following data:
Brunette | Brown | Blond | Red | Gray | Bald |
30% | 20% | 25% | 12% | 5% | 8% |
You decide to conduct a hypothesis test to determine if your total promotions follow the distribution of the demographics of your sales force.
a. State your null hypothesis.
b. State your alternative hypothesis.
c. Describe the Type I error for this test and what its implications are for ACME NHT Inc.
d. Describe the Type II error for this test and what its implications are for ACME NHT Inc.
e. Fill in the following table with your expected number of promotions for each hair color if H0 is true. (Recall you had a total of 400 promotions.)
Brunette | Brown | Blond | Red | Gray | Bald |
f. What is the critical value of your test statistic if you are willing to reject your null hypothesis at thea = .10 level of significance? (Ensure you identify what type of statistic it is.)
g. What is the calculated value of your test statistic?(Show as much work as necessary to ensure partial credit if you are not confident of your answer.)
h. What is the p-value for this test? What does it represent?
i. What do you conclude about your hypothesis test, and why?
j. What action will you take as the Executive Vice President of Sales?
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