Chapter 2, Problem 46E

Be a Simpson Can you design a Simpson’s paradox? Two companies are vying for a city’s “Best Local Employer” award, to be given to the company most committed to hiring local residents. Although both employers hired 300 new people in the past year, Company A brags that it deserves the award because 70% of its new jobs went to local residents, compared to only 60% for Company B. Company B concedes that those percentages are correct, but points out that most of its new jobs were full-time, while most of Company A’s were part-time. Not only that, says Company B, but a higher percentage of its full-time jobs went to local residents than did Company A’s, and the same was true for part-time jobs. Thus, Company B argues, it’s a better local employer than Company A.

Show how it’s possible for Company B to fill a higher percentage of both full-time and part-time jobs with local residents, even though Company A hired more local residents overall.