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Evaluating Disparate Adverse Impact Using 4/5ths Rule, Chi-Square Test, & Fisher Exact Test in R 

David Caughlin
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This tutorial demonstrates how to evaluate whether their is prima facie evidence of disparate impact (adverse impact) by using the 4/5ths Rule (including the "flip-flop rule"), Chi-Square Test of Independence (with and without Yates continuity correction), and Fisher Exact Test.
Other approaches for evaluating disparate impact that are not covered in this tutorial include the Z score ("2 standard deviation rule"), the Z_IR (Z impact ratio), and the construction of a confidence interval around the impact ratio; I also have a video tutorial on those tests as well if you're interested: • Evaluating Disparate (... .
When sample sizes are small, selection ratios are low, and/or there is a small proportion of individuals from the focal group, then a one-tailed Z_IR test may help to avoid false negatives (Morris, 2001; Morris & Lobsenz, 2000). Given that the 4/5ths Rule has a tendency to result in large proportion of false positives (even in large samples), it is advisable to pair the 4/5ths test with a statistical test like the chi-square test of independence, Fisher exact test, or the Z_IR test (Roth, Bobko, & Switzer, 2006).
The following topics appear at the timestamps noted in brackets: (a) a list of recommended readings and their references [0:35]; (b) 4/5ths rule [6:40]; "flip-flop rule" (adjusted impact ratio; IR_adj) [21:28]; chi-square test of independence (with and without Yates continuity correction) [27:08]; and Fisher exact test [33:48].
If you would like to learn how to visualize evidence (or the lack thereof) of disparate (adverse) impact, check out this video: • Visualizing Disparate ... .
Other videos from my "R Tutorials" playlist can be found here: • R Tutorials
The data file(s) referenced in this R tutorial (and other R tutorials on this playlist) can be downloaded as a compressed (zipped) folder by visiting the following link: github.com/davidcaughlin/R-Tu.... Click "Clone or Download" followed by "Download ZIP".

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7 авг 2024

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