Using the FourFifths Rule Evaluate Adverse Impact Resources

Using the Four-Fifths Rule, Evaluate Adverse Impact

Resources

In this assignment, you will use the four-fifths rule and evaluate adverse impact in regard to race or gender. From your course text, read the case study on pages 388–389 of Chapter 3, \"The Legal Context.\"

In a 2–3-page paper, you will:

Evaluate the stock and concentration statistics using Tables A2 and A4.

Determine the adverse impact using the four-fifths rule for the data in Table A3.

Summarize your findings.

Develop recommendations for Chern\'s to correct any potential issues the statistics indicate

Solution

Answer:

The four-fifths or 80% rule is described by the guidelines as “a selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80%) of the rate for the group.

However, the most notable disadvantage of the impact ratio is that it is subject to considerable sampling errors (especially when the sample size and selection ratio are small) and is prone to making a Type I error.