Statistical discrimination is
A) using statistics to judge the average characteristics of a group of workers.
B) judging one person according to a group to which he or she belongs.
C) using statistics in hiring.
D) firing people due to low average productivity.

Question

Quizplus · Accepted Answer

Statistical discrimination is when a person is judged based on the characteristics of the group they belong to, rather than their individual merits. This can result in individuals being unfairly disadvantaged or advantaged based on their race, gender, or other factors. Using statistics to judge the average characteristics of a group of workers (A) or using statistics in hiring (C) are not necessarily forms of statistical discrimination, as long as individual merits are also considered. Firing people due to low average productivity (D) may be a legitimate reason for termination if there is evidence of poor individual performance, but it is not an example of statistical discrimination.

Statistical Discrimination Is