Final answer:
Statistical discrimination in employment occurs when an employer uses group-based statistics to make decisions about individuals, often resulting in unfair and biased hiring practices.
Step-by-step explanation:
When an employer makes decisions based on statistical discrimination, it is: d. using observations about the average characteristics of a group to make inferences about an individual. Statistical discrimination occurs in labor markets when employers use imperfect information, such as resumes and skills tests, combined with group-based statistics to make hiring decisions. For example, if an employer believes that women are on average less productive carpenters, she might favor a male applicant over a female applicant with the same qualifications due to this belief, which exemplifies statistical discrimination.