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Shortcomings of the 80% Rule – What is the 80% Rule?

According to “The Statistics of Discrimination” by Paetzhold and Willborn, the “predominant method” for comparing favored and disfavored groups of employees is the four-fifths rule. The EEOC...

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Shortcomings of the 80% Rule – Insensitivities to Sample Size

One problem with the 80% Rule is that it is insensitive to sample size (i.e., the number of things being studied). Assume that we have a group containing 3 protected members and 3 non-protected...

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Shortcomings of the 80% Rule – Insnsitivities to Magnitude of Disparity

Aside from being insensitive to the sample size, the 80% Rule is also insensitive to the magnitude of the disparity. To demonstrate this, consider the following two examples. Assume that we have a...

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Shortcomings of the 80% Rule – Arbitrariness and Lack of Statistical Basis

The final shortcoming of the 80% Rule that I will discuss is its arbitrariness and lack of statistical basis. The choice of 80% has no scientific or empirical basis. There is no underlying reason for...

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Fisher’s Exact Test: Alternative to 80% Rule

Considerable time has been spent discussing the shortcomings of the 80% Rule. We know: The 80% Rule is insensitive to sample size, which can lead to Type I and Type II errors The 80% Rule is...

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