The Acme Global Corporation needed to hire 45 new advertising sales agents.The applicant pool consisted of 100 African American males and 100 White males.Of the 200 applicants,Acme Global hired 20 of the African American males and 25 of the White males.Is there evidence of disparate impact?

Question

Quizplus · Accepted Answer

The four-fifths rule states that a selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80%) of the rate for the group with the highest rate will generally be regarded as evidence of adverse impact. In this case, the selection rate for African American males is 20% (20 out of 100), and for White males, it is 25% (25 out of 100). The 20% rate for African American males is exactly 80% of the 25% rate for White males, thus meeting the four-fifths rule and indicating no evidence of disparate impact based on this rule.

The Acme Global Corporation Needed to Hire 45 New Advertising