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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
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.
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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