Question

A vehicle manufacturing company decides to hire 35 employees for its new servicing branch located in Texas. A total of 90 eligible applicants apply for the job, of which 40 are black and 50 are white. Assuming that the company decides to hire 10 blacks and 25 whites, what can be inferred using the four-fifths rule?

A. 0.5<0.8; this indicates that there is no evidence of discrimination.
B. 2>0.8; this indicates that there is evidence of discrimination.
C. The hiring rate for blacks is equal to four-fifth the hiring rate of whites; hence, there is no evidence of discrimination.
D. 0.5<0.8; this indicates that there is evidence of discrimination.
E. 2>0.8; this indicates that there is no evidence of discrimination.

Answer 1

The four-fifths rule is used to assess potential employment discrimination. In this case, there may be evidence of discrimination based on the four-fifths rule.

Step-by-step explanation:

The four-fifths rule, also known as the 80% rule, is used to assess potential employment discrimination by comparing the selection rates of different groups. According to the four-fifths rule, if the selection rate for a protected group is less than four-fifths (or 80%) of the selection rate for the group with the highest rate, then there may be evidence of discrimination. In this case, the company hires 10 blacks out of 40 eligible black applicants, resulting in a selection rate of 10/40 = 0.25. The company also hires 25 whites out of 50 eligible white applicants, resulting in a selection rate of 25/50 = 0.5. Since 0.25 is less than 0.5, which is not four-fifths or 80% of 0.5, there may be evidence of discrimination.