The selection ratio for women ( %)
= Number of women presented with offer/ Number of women considered x 100
= 13/200 x 100
= 6.5 %
The selection ratio for men ( %)
= Number of men presented with offer / Number of men considered x 100
= 7/100 x 100
= 7%
The four-fifths rule prescribes that a selection rate for any group (classified by race, sexual orientation or ethnicity) that is less than four-fifths of that for the group with the highest rate constitutes evidence of adverse impact (also called ‘disparate impact’), that is, discriminatory effects on a protected group. Adverse impact may occur in any of the company’s decisions related to employees – be it hiring, promotion, training, transfer or layoff. A particular test or selection procedure must be evaluated for effectiveness in terms of selection based only on characteristics relevant to the job or task. It may, however, render disadvantage to members of a race, sex or ethnic group.
The group with highest rate here is the “men group” with selection ratio of 7%
As per 4/5th rule, it will not be considered having any adverse impact on women group, as long as :
Selection ratio for women > 80% of 7% ( or 5.6%)
The actual selection ratio for women ( 6.5% ) > Threshold limit of 5.6%
Therefore, there is no statistical evidence of adverse impact in this case .
ANSWER : NO
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