NoSeeUm Exterminating Company in Mobile has 55 employees who

No-See-Um Exterminating Company in Mobile has 55 employees who applied for a promotion to Senior Technician. Of those who applied, 31 were non-minorities and 24 were minorities. No-See-Um promoted 21 to Senior Technician. Of those promoted, 15 were non-minorities and 6 were minorities. Using the 4/5 rule, does adverse impact exist for minority status?

A. No, the selection rates for non-minorities and minorities do not differ significantly

B. Yes, minorities are promoted at 51.6% the rate that non-minorities are promoted

C. Yes, minorities are promoted at 25.0% the rate that non-minorities are promoted

D. Yes, minorities are promoted at 40.0% the rate that non-minorities are promoted

E. No, the selection rate for promotion for non-minorities is also low at 27.3%

Rodney Rat’s Theme Park is hiring food service workers. A total of 110 people applied for 51 jobs, 65 non-minorities and 55 minorities. Of those who applied, 51 were hired: 30 non-minorities and 21 minorities. Using the 4/5 rule, does adverse impact exist for minorities?

A. No, both minorities and non-minorities were hired at a rate less than 50%

B. Yes, minorities were hired at 38.2% the rate that non-minorities were hired

C. No, minorities were hired at 82.7% the rate that non-minorities were hired

D. Yes, minorities were hired at 17.3% the rate that non-minorities were hired

E. No, minorities and non-minorities were hired at a rate that was less than 10% different from each other

Solution

1) B. Yes, minorities are promoted at 51.6% the rate that non-minorities are promoted

Explanation: Rate at which non-minorities promoted = 15/31 = 0.484

Rate at which minorities promoted = 6/24 = 0.25

Using 4/5 rule, Rate at which minorities promoted / Rate at which non-minorities promoted = 0.25/0.484 = 51.6 %

This is less than 80% (4/5) therefore, adverse impact exists.

2) C. No, minorities were hired at 82.7% the rate that non-minorities were hired

Explanation: Rate at which non-minorities hired = 30/65 = 0.462

Rate at which minorities hired = 21/55 = 0.382

Using 4/5 rule, Rate at which minorities hired / Rate at which non-minorities hired = 0.382/0.462 = 82.7 %

This is greater than 80% (4/5) therefore, adverse impact does not exist.