A hotel hired the following individuals in each racial category. Did the hotel violate the 4/5 rule against the Hispanic applicants? # Applied # Hired Caucasian 100 60 Hispanic 75 18 Yes No
A hotel hired the following individuals in each racial category. Did the hotel violate the 4/5 rule against the Hispanic applicants? # Applied # Hired Caucasian 100 60 Hispanic 75 18 Yes No
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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![**Title: Analysis of Hiring Practices: Applying the 4/5 Rule**
---
**Introduction:**
This educational module explores the application of the 4/5 rule, a guideline used in employment law to assess potential discrimination in hiring practices.
**Scenario:**
A hotel hired individuals in two racial categories. The following table provides data on applications and hires:
| | # Applied | # Hired |
|---------------|-----------|---------|
| Caucasian | 100 | 60 |
| Hispanic | 75 | 18 |
**Question:**
Did the hotel violate the 4/5 rule against the Hispanic applicants?
**Analysis of the 4/5 Rule:**
The 4/5 rule, also known as the 80% rule, is a method to determine if there is evidence of discrimination in hiring. According to this rule, the hiring rate for a minority group should be at least 80% of the rate for the majority group.
**Calculations:**
1. **Caucasian Hiring Rate:**
- Hiring rate = (# Hired / # Applied) = 60/100 = 0.60
2. **Hispanic Hiring Rate:**
- Hiring rate = (# Hired / # Applied) = 18/75 ≈ 0.24
3. **Comparative Analysis:**
- 80% of the Caucasian hiring rate = 0.60 * 0.8 = 0.48
**Conclusion:**
- The Hispanic hiring rate (0.24) is less than 0.48, indicating a potential violation of the 4/5 rule.
**Response Options:**
- Yes
- No
This analysis serves to highlight how statistical methods can be applied to real-world scenarios to ensure fair employment practices.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc3243f7f-4459-49a3-b8f1-08c432ad7adc%2Ffbb79690-bf33-4409-8ea0-13001dfa563d%2F610jg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Title: Analysis of Hiring Practices: Applying the 4/5 Rule**
---
**Introduction:**
This educational module explores the application of the 4/5 rule, a guideline used in employment law to assess potential discrimination in hiring practices.
**Scenario:**
A hotel hired individuals in two racial categories. The following table provides data on applications and hires:
| | # Applied | # Hired |
|---------------|-----------|---------|
| Caucasian | 100 | 60 |
| Hispanic | 75 | 18 |
**Question:**
Did the hotel violate the 4/5 rule against the Hispanic applicants?
**Analysis of the 4/5 Rule:**
The 4/5 rule, also known as the 80% rule, is a method to determine if there is evidence of discrimination in hiring. According to this rule, the hiring rate for a minority group should be at least 80% of the rate for the majority group.
**Calculations:**
1. **Caucasian Hiring Rate:**
- Hiring rate = (# Hired / # Applied) = 60/100 = 0.60
2. **Hispanic Hiring Rate:**
- Hiring rate = (# Hired / # Applied) = 18/75 ≈ 0.24
3. **Comparative Analysis:**
- 80% of the Caucasian hiring rate = 0.60 * 0.8 = 0.48
**Conclusion:**
- The Hispanic hiring rate (0.24) is less than 0.48, indicating a potential violation of the 4/5 rule.
**Response Options:**
- Yes
- No
This analysis serves to highlight how statistical methods can be applied to real-world scenarios to ensure fair employment practices.
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