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NOTE ON TERMINOLOGY
Pages 2-3

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From page 2...
... The core question has been whether discrepant employment outcomes -- such as differential hiring, promotion, or retention rates -- reflect real differences in ability or performance or whether they are primarily the result of inherently unfair or biased employment practices. Adverse impact, defined as differential hiring rates for various groups in the population of job candidates, can occur whenever there are differences in scores on a selection device.
From page 3...
... Conversely, majority-group applicants tend to score better on the test than they do on the job and therefore benefit from errors of false acceptance. Misclassification error occurs with any test that has less than perfect validity, and the misclassification rate increases as the valiclity decreases.


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