The Selection Rate Comparison evaluates the passing rates between two groups (e.g., men and women) on a practice, procedure, or test. This is the most conventional type of analysis for making adverse impact determinations, and is modeled after Section 4D of the Uniform Guidelines on Employee Selection Procedures and numerous court cases. The specific tests included are:
- 80% Test: This test compares the passing rate between two groups (e.g., men vs. women) using the 80% test for adverse impact specified in the Guidelines (a “violation” occurs if one group’s passing rate is less than 80% of the group with the highest rate).
- Statistical Significance Test (estimated, two-tail): This test uses a statistical procedure (the Hypergeometric Variance formula) to estimate the statistical probability of the observed passing rate difference between groups.
- Statistical Significance Test (exact, two-tail): The Fisher Exact Test is used to calculate the exact probability of the passing rate difference between two groups. Statistically significant values are calculated in the “exact” form and reveal the precision likelihood of the differences occurring by chance.
- Practical Significance Test: This procedure evaluates whether the statistical significance findings are practically sound, or if they are based on “barely significant” results that would become insignificant if just two more persons from the disadvantaged group would have passed the practice, procedure, or test. The adverse impact test is taken from Waisome v. Port Auth., 948 F.2d 1370, 1376 (2d Cir.1991) and U.S. v. Commonwealth of Virginia, 569 F2d 1300 (CA-4 1978), 454 F Supp. 1077.
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