A hotel chain that is recruiting front desk receptionists receives 200 applications from males and 100 applications from females. 100 out of 200 men are hired and 25 out of 100 women are hired
Which of the following statements is true of the hotel chain's hiring policy?
A) There is evidence of a disparate impact of the hiring process on males as a group.
B) There is evidence of a disparate impact of the hiring process on females as a group.
C) There is no evidence of any disparate impact.
D) There is evidence of disparate impact against both males and females.
B
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A small property and liability insurance company concentrated its underwriting efforts in one city in Oklahoma. When tornadoes damaged a large number of structures in the city, the insurer did not have adequate financial resources to pay the losses and it became insolvent. Which characteristic of an ideally insurable risk was violated in this scenario?
(a) there must be a large number of exposure units (b) the loss should not be catastrophic (c) the loss must be accidental and unintentional (d) the loss must be determinable and measurable
A house is appraised at $423,000, even though it cost $435,000 to build three years earlier. Which factor could NOT have contributed to the loss in value?
a. Regression b. Gentrification c. Functional obsolescence d. Supply and demand