MathsGee Answers is Zero-Rated (You do not need data to access) on: Telkom | Dimension Data | Rain | MWEB
First time here? Checkout the FAQs!
x
MathsGee is Zero-Rated (You do not need data to access) on: Telkom |Dimension Data | Rain | MWEB

0 like 0 dislike
189 views
When is adverse impact ratio considered ideal to measure and evaluate discrimination in credit decisions?
in Mathematics by Diamond (75,918 points) | 189 views

1 Answer

0 like 0 dislike
AIR is another well-known and widely accepted measure of discrimination used for evaluating yes-no decisions. AIR is the ratio of the acceptance rate for a protected class and the acceptance rate for the control group.

$$\dfrac{Pr(\hat{y} = 1 | X_{p} = 1)}{Pr(\hat{y} = 1 | X_{c} = 1)}$$

A lower AIR would indicate that a lower percentage of applicants within the protected class are accepted than applicants in the control group. Importantly, AIR is one measure of disparate impact that is associated with a published practical significance threshold. Specifically, in some employment law contexts, AIR values below 0.8 that are statistically significant may be considered prima facie evidence of illegal disparate impact discrimination.
by Diamond (75,918 points)

Related questions

0 like 0 dislike
1 answer
0 like 0 dislike
1 answer
0 like 0 dislike
0 answers
0 like 0 dislike
1 answer

MathsGee provides answers to subject-specific educational questions for improved outcomes.



On MathsGee Answers, you can:


1. Ask questions
2. Answer questions
3. Comment on Answers
4. Vote on Questions and Answers
5. Donate to your favourite users

MathsGee Tools

Math Worksheet Generator

Math Algebra Solver

Trigonometry Simulations

Vectors Simulations

Matrix Arithmetic Simulations

Matrix Transformations Simulations

Quadratic Equations Simulations

Probability & Statistics Simulations

PHET Simulations

Visual Statistics

Other Tools

MathsGee ZOOM | eBook

16,915 questions
12,339 answers
122 comments
2,433 users