A large company is being sued for gender discrimination because 20% of newly hired candidates are women when 40% of all applicants were women. You plan to use hypothesis testing to determine whether there is significant evidence that the company's hiring practices are discriminatory.
a. State the null and alternative hypotheses for the significance test. b. In the context of the problem, what would a Type I error be? A Type II error?
c. If the hypothesis is tested at a 1% level of significance instead of 5%, how will this affect the power of the test?
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