Acme Global needed to hire 30 new advertising sales agents.The applicant pool consisted of 100 African American males and 100 White males.Of the 200 applicants,Acme Global hired 10 of the African American males and 20 of the White males.Is there evidence of disparate impact?

Question

Quizplus · Accepted Answer

The Four-Fifths Rule states that the selection rate for any race, sex, or ethnic group should be at least 80% of the group with the highest selection rate. In this case, the highest selection rate is 20% for White males. Therefore, the minimum selection rate for African American males should be 80% of 20%, which is 16%. However, the selection rate for African American males is only 5%, which is significantly lower than 16%. This indicates that there is evidence of disparate impact, as African American males are being hired at a much lower rate than White males.

Acme Global Needed to Hire 30 New Advertising Sales Agents