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Statistical Analysis Statistical Analysis of EO Data of EO Data Pir Ahmad, CRC Pir Ahmad, CRC

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Statistical Analysis of EO Statistical Analysis of EO DataData

Pir Ahmad, CRCPir Ahmad, CRC

Statistical Analysis of EO Statistical Analysis of EO DataData

Aids in monitoring activitiesAids in monitoring activities

Monitor the recipient’s equal opportunity Monitor the recipient’s equal opportunity performanceperformance

Identify instances or areas of potential Identify instances or areas of potential discriminationdiscrimination

Identify individuals or groups who may Identify individuals or groups who may have been discriminated againsthave been discriminated against

A substantially different rate of A substantially different rate of representation, in hiring, promotion, or other representation, in hiring, promotion, or other employment decision that works to the employment decision that works to the disadvantage of protected group. (i.e. race, disadvantage of protected group. (i.e. race, sex, nationality, etc.)sex, nationality, etc.)

If a group’s rate of representation is less than If a group’s rate of representation is less than 80% of the most favored group, the group is 80% of the most favored group, the group is experiencing adverse impact.experiencing adverse impact. ((Note:Note: At this At this point, this does not mean discrimination.)point, this does not mean discrimination.)

Term to Know - Adverse ImpactTerm to Know - Adverse Impact

6-3

Determining Adverse Determining Adverse Impact:Impact:

Four StepsFour Steps1.1. Calculate the rate of representation Calculate the rate of representation

for each protected group by for each protected group by dividing the number of persons dividing the number of persons selected from a group by the selected from a group by the number of applicants – or number of applicants – or candidates – from that group.candidates – from that group.

Determining Adverse Impact:Determining Adverse Impact:Four Steps (cont.)Four Steps (cont.)

Race# of

Applicants# of

Selectees

% of Applicants Selected

White 100 40 40%Black 60 10 17%

Hispanic 20 5 25%Am Ind 10 1 10%

Total 190 56 29%

Determining Adverse Determining Adverse Impact:Impact:

Four StepsFour Steps (cont.) (cont.)

2.2. Determine which group is experiencing Determine which group is experiencing the most advantageous rate:the most advantageous rate:

For positive personnel transactions For positive personnel transactions (e.g(e.g., ., hiring), the most favored group has the hiring), the most favored group has the highest rate.highest rate.

For negative personnel transactions For negative personnel transactions (e.g.,(e.g., termination)termination),, the most favored group has the most favored group has the lowest rate.the lowest rate.

Determining Adverse Impact:Determining Adverse Impact:Four Steps (cont.)Four Steps (cont.)

Race# of

Applicants# of

Selectees

% of Applicants Selected

White 100 40 40%Black 60 10 17%

Hispanic 20 5 25%Native Amern 10 1 10%

Total 190 56 29%

Determining Adverse Determining Adverse Impact:Impact:

Four StepsFour Steps (cont.) (cont.)

3.3. Calculate the impact ratio by comparing the Calculate the impact ratio by comparing the representation rate for each group with that of representation rate for each group with that of the most favored group. Multiply this result the most favored group. Multiply this result by 100 to express the result as a percentage.by 100 to express the result as a percentage.

• For positive actions, place the most favored For positive actions, place the most favored group’s rate in the denominator position.group’s rate in the denominator position.

• For negative actions, place the most For negative actions, place the most favored group’s rate in the numerator favored group’s rate in the numerator position.position.

Determining Adverse Impact:Determining Adverse Impact:Four Steps (cont.)Four Steps (cont.)

Race# of

Applicants# of

Selectees

% of Applicants Selected

Adverse Impact

Analysis

White 100 40 40%Black 60 10 17% 0.42

Hispanic 20 5 25% 0.63Native Amern 10 1 10% 0.25

Total 190 56 29%

Determining Adverse Determining Adverse Impact:Impact:

Four StepsFour Steps (cont.) (cont.)

4.4. Observe whether the resulting ratio Observe whether the resulting ratio for any group is less than .8 for any group is less than .8 regardless of whether it is a positive regardless of whether it is a positive or negative transaction – this or negative transaction – this indicates adverse impact.indicates adverse impact.

• Using this technique, the ratio will Using this technique, the ratio will always be 1 or less.always be 1 or less.

Measures dispersion – how spread out Measures dispersion – how spread out the values in a data set are.the values in a data set are.

A measure of the average difference A measure of the average difference between the values of the data in the between the values of the data in the set.set.

The standard deviation is always a The standard deviation is always a positive number.positive number.

((Note:Note: At this point, this does not mean At this point, this does not mean

discrimination.)discrimination.)

Term to Know – Standard Term to Know – Standard DeviationDeviation

6-11

Statistical Analysis of Statistical Analysis of EO Program Data:EO Program Data:

Mean (average):Mean (average): Add the value of Add the value of all the observations; then divide the all the observations; then divide the sum by the number of data sum by the number of data observations. observations.

µ = µ = (x (xnn)/n)/n

Statistical Analysis of Statistical Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Variance:Variance: Is the average squared deviation of Is the average squared deviation of the data from their mean (average).the data from their mean (average).

22 = = (x(x i i - µ) - µ)22/n/n

Standard Deviation:Standard Deviation: The (positive) square root The (positive) square root of the variance. A statistic used as a measure of of the variance. A statistic used as a measure of dispersion in a distribution; a measure of the dispersion in a distribution; a measure of the typical distance between the average (mean) and typical distance between the average (mean) and any given value. It measures the “width” of the any given value. It measures the “width” of the distribution of values. distribution of values.

= √ = √ 22

Example of Data Analysis of Example of Data Analysis of EO Program Data:EO Program Data:

Race# of

Applicants

White 100Black 60

Hispanic 20Native Amern 10

Total 190

mean 48variance 1269

standard deviation 36

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Race# of

Applicants

Applicants -- Standard

Deviations

White 100 2.78Black 60 1.67

Hispanic 20 0.56Native Amern 10 0.28

Total 190

mean 48variance 1269

standard deviation 36

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Race# of

Applicants

Applicants -- Standard

Deviations

# of Selectees

% of Applicants Selected

White 100 2.78 40 40%Black 60 1.67 10 17%

Hispanic 20 0.56 5 25%Native Amern 10 0.28 1 10%

Total 190 56 29%

mean 48 14variance 1269 236

standard deviation 36 15

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Race# of

Applicants

Applicants -- Standard

Deviations

# of Selectees

% of Applicants Selected

Adverse Impact

Analysis

White 100 2.78 40 40%Black 60 1.67 10 17% 0.42

Hispanic 20 0.56 5 25% 0.63Native Amern 10 0.28 1 10% 0.25

Total 190 56 29%

mean 48 14variance 1269 236

standard deviation 36 15

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Race# of

Applicants

Applicants -- Standard

Deviations

# of Selectees

% of Applicants Selected

Adverse Impact

Analysis

Selectee -- Standard

Deviations

White 100 2.78 40 40% 2.67Black 60 1.67 10 17% 0.42 0.67

Hispanic 20 0.56 5 25% 0.63 0.33Native Amern 10 0.28 1 10% 0.25 0.07

Total 190 56 29%

mean 48 14variance 1269 236

standard deviation 36 15

Example of Data Analysis of Example of Data Analysis of EO Program Data: (cont.)EO Program Data: (cont.)

Race# of

Applicants# of

Selectees

% of Applicants Selected

Adverse Impact

Analysis

Applicants -- Standard

Deviations

Selectee -- Standard

Deviations

Expected # of

Selectees

Differential from

Expected Selection

Black 100 40 40% 2.78 2.67 29 -11White 60 10 17% 0.42 1.67 0.67 18 8Asian 20 5 25% 0.63 0.56 0.33 6 1

Native Amern 10 1 10% 0.25 0.28 0.07 3 2

Total 190 56 29% 56

mean 48 14 14variance 1269 236 110

standard deviation 36 15 10

For further assistance in For further assistance in conducting statistical analysis on conducting statistical analysis on EO program data or for EO program data or for questions on this material questions on this material

Please contact:Please contact:

Pir Ahmad at (202) 693-6560Pir Ahmad at (202) 693-6560

or via email ator via email at

[email protected]@dol.gov