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
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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.
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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