Final answer:
Statistical discrimination involves making decisions about individuals based on group averages derived from statistical data. Not all instances are illegal or unethical, and statistical discrimination relies on statistics rather than personal biases. Only statements 1) and 2) are true.
Step-by-step explanation:
Statistical discrimination is a theory regarding how decisions in areas such as employment may be affected by group averages rather than individual information. This theory assumes that some form of discrimination is an information problem, where employers, with imperfect
information about an individual's productivity, rely on group statistics. For instance, an employer may wrongly assume that women are less productive than men in a certain profession and consequently prefer a male candidate over a female one, given similar qualifications.
Answering the question regarding which statements about statistical discrimination are true:
- It is a form of discrimination based on statistical data.
- It involves making decisions about individuals based on group averages.
- It is not always illegal and unethical—while often problematic, not all instances of statistical discrimination are addressed by law.
- It is not based on personal biases, as statistical discrimination relies on statistics rather than subjective biases.
Therefore, statements 1) and 2) are accurate descriptions of statistical discrimination, while 3) and 4) are incorrect. Only statements 1) and 2) are true.