Four-Fifths Rule
With twenty applicants per group and no difference at all in the process, the four-fifths rule indicated adverse impact in 61.7% of simulated runs.
With twenty applicants per group and no difference at all in the process, the four-fifths rule indicated adverse impact in 61.7% of simulated runs.
Group B was hired at a higher rate in both roles — 0.6600 and 0.0800 — and its combined impact ratio came out at 0.2629.