More Advanced Testing
The concept of practical significance for adverse impact was first introduced by Section 4D of the Uniform Guidelines, which states "Smaller differences in selection rate may nevertheless constitute adverse impact, where they are significant in both statistical and practical terms …" Several federal court cases have applied practical significance tests to adverse impact analyses to assess the "practicality" or "stability" of the results. This is typically done by evaluating the change to the statistical significance tests after hypothetically changing focal group members selection status from "failing" to "passing" (see for example, Contreras v. City of Los Angeles (656 F.2d 1267, 9th Cir. 1981); U.S. v. Commonwealth of Virginia (569 F.2d 1300, 4th Cir. 1978); and Waisome v. Port Authority (948 F.2d 1370, 1376, 2d Cir. 1991)).
Read more about this topic: Disparate Impact
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