Suppose Gigantic Health Cooperative doesn't hire Mandy Morrison solely because she is a graduate of a particular foreign medical school, which is not known for the high quality of its graduates. Yet Mandy is actually more qualified than the average graduate of American medical schools. This is an example of

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Quizplus · Accepted Answer

Statistical discrimination occurs when an employer makes decisions based on group averages or stereotypes rather than individual qualifications. In this case, Mandy is judged based on the general reputation of her school rather than her personal qualifications.

Suppose Gigantic Health Cooperative Doesn't Hire Mandy Morrison Solely Because