The formula to calculate the 4/5 Rule or 80% Rule (SR) is:
\[ SR = \left( \frac{SRp}{SRh} \right) \times 100 \]
Where:
The 4/5 rule, also known as the 80% rule, is a legal test used in the United States to determine whether there is evidence of adverse impact in employment practices. It is used in situations where a protected group, such as women or minorities, is selected at a rate less than 80% of the rate of the group with the highest selection rate. If the selection rate for a protected group is less than 80% or 4/5 of the selection rate for the group with the highest selection rate, it is considered evidence of adverse impact, which could potentially lead to a discrimination lawsuit.
Let's assume the following values:
Using the formula:
\[ SR = \left( \frac{60}{90} \right) \times 100 \approx 66.67 \% \]
The selection rate (\(SR\)) is approximately 66.67%, which is less than 80%, indicating evidence of adverse impact.