ABSTRACT
Classic adverse impact analysis, as described in the Uniform Guidelines on Employee Selection Procedures (1978), is often understood as simply a test for difference in selection rates between two groups. Although traditional selection rate analysis serves most adverse impact inquiries well, it is important to recognize that adverse impact investigations are not limited to selection rate tests. In fact, there are many situations where classic selection rate methods cannot be applied, and in such instances alternative methods are required. Notably, one of the most important alternatives is the binomial method for the evaluation of differences in proportions. Although the binomial method is not often considered the primary approach in an adverse impact investigation, it was central in the landmark U.S. Supreme Court’s decision in Hazelwood School District v. United States (1977), where the EEOC successfully applied binomial statistics in establishing a case of discrimination. As such, it is important for adverse impact analysts to attain a firm understanding of the binomial statistical method.
