Question

Consider the following analogy: You are a hiring manager for a large company. For every job applicant, you must decide whether to hire the applicant based on your assessment of whether he or she will be an asset to the company. Suppose your null hypothesis is that the applicant will not be an asset to the company. As in hypothesis testing, there are four possible outcomes of your decision: (1) You do not hire the applicant when the applicant will not be an asset to the company, (2) you hire the applicant when the applicant will not be an asset to the company, (3) you do not hire the applicant when the applicant will be an asset to the company, and (4) you hire the applicant when the applicant will be an asset to the company.

1. Which of the following outcomes corresponds to a Type I error?
A. You hire the applicant when the applicant will not be an asset to the company.
B. You do not hire the applicant when the applicant will be an asset to the company.
C. You do not hire the applicant when the applicant will not be an asset to the company.
D. You hire the applicant when the applicant will be an asset to the company.
2. Which of the following outcomes corresponds to a Type II error?
A. You hire the applicant when the applicant will not be an asset to the company.
B. You hire the applicant when the applicant will be an asset to the company.
C. You do not hire the applicant when the applicant will be an asset to the company.
D. You do not hire the applicant when the applicant will not be an asset to the company.
As a hiring manager, the worst error you can make is to hire the applicant when the applicant will not be an asset to the company. The probability that you make this error, in our hypothesis testing analogy, is described by:________.

Answer 1

1. Option A

2. Option C

Explanation:

The null hypothesis is that the applicant will not be an asset to the company, thus you do not hire such applicant

The alternative hypothesis is that the applicant will be an asset to the company and you then hire such applicant.

A type I error occurs when the researcher rejects the null hypothesis when true.

A type II error occurs when the researcher fails to reject the null hypothesis when it is not true.

1. Type I error:

You hire the applicant when the applicant will not be an asset to the company

2. Type II error:

You do not hire the applicant when the applicant will be an asset to the company.

3. Type I error because you rejected the null hypothesis to not hire when the applicant will not be an asset to the company.

Answer 2

1. A. You hire the applicant when the applicant will not be an asset to the company.

2. C. You do not hire the applicant when the applicant will be an asset to the company.

Explanation:

1. The type I error happens when the null hypothesis is rejected when it is true, in this way we know that the null hypothesis is that the new employee will not be active for the company, so option B is rejected, because it refers that the Applicant if he will be active or for the company, option C is rejected because the inactive employee is rejected, accepting the null hypothesis, option D is rejected because the contracted applicant if active, so the correct answer is A, in which the inactive applicant is hired.

2.

we know that the type II error occurs when the null hypothesis is accepted, being this false, we know that the null hypothesis is to hire an inactive applicant for the company, so option A is not correct, in which the null hypothesis is accepted taking it as true, option B is rejected, in which the contract is made to an active applicant, so the null hypothesis is false and option D is rejected, in which the null hypothesis is rejected, therefore the correct answer It is the C in which the active applicant is not hired.