Logistic Regression (Overview)
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Using Logistic Regression to
Evaluate Adverse Impact
BCGi: Adverse Impact & Test Validation Book Series
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• Classic adverse impact analyses can only
determine if the numerical difference in passing
rates between two groups is significantly
different.
• Logistic Regression (LR) can identify if that
numerical difference in passing rates is due to
applicant differences in job-related criteria (e.g.,
experience or education).
Logistic Regression Overview
2 www.BCGinstitute.org
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Logistic Regression Example
Hiring
Decision(s)
Education Reference
Check Score
Relevant
Experience
Gender
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• LR needs to be applied to job-related factors that were actually used or considered in the selection process
• LR should be mapped onto actual positions, hiring data, and hiring
decisions, not theoretical ones
• LR is useful for weighing the practical importance of job-related
factors in the hiring or promotion process
• LR can also be useful for determining “shortfall” calculations
― For example, how many women would have been hired “but
for” the possible discrimination?
― What is the total shortfall for women, given what the model
can explain?
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Logistic Regression Overview
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Why is this Topic Important to HR/EEO Professionals?
• Why do I need to know about this topic?
– LR can be a powerful tool to justify adverse impact in some cases
– Critical concept on both sides of EEO issues
• What are the key essentials I need to know about this topic? – What circumstances are best for LR analyses?
– How can a LR dataset be set up?
– How to understand the key essentials in an LR report?
• What are the consequences surrounding these issues? – Adverse impact left unjustified (either through LR or validity,
or both) constitutes a huge liability for both audits and court cases
– Can be a more powerful tool that standard AI
– LR can be useful for counting and re-counting shortfalls
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Presentation Overview
• Overview & Background
• The Connection between Classic AI & LR:
– Why Classic AI should be established before using LR
• Three Steps for Building an LR Dataset
• Nine Steps for Conducting an LR Analysis
• Model Refinement & Examining Assumptions
• Interpreting LR Analysis Results
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Resources
• Adverse Impact and Test Validation: A Practitioner's Handbook by Daniel A. Biddle, Ph.D.
– Purchase online at www.BCGinstitute.org
• Adverse Impact and Test Validation Book Series Webinars
– Recordings available online for all BCGi Platinum Members
– Webinar slides available online to all BCGi Standard & Platinum
Members
• BCGi Membership
– Free Standard Membership
– Premium Platinum Membership
www.BCGinstitute.org
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About Our Sponsor: Biddle Consulting Group (BCG)
BCG is an HR firm dedicated to providing the highest products and services related to
Equal Employment Opportunity (EEO), Affirmative Action and Employee Selection.
• BCG’s Consulting Services
― Affirmative Action Plan Outsourcing
― Compensation Analysis
― EEO/AA Litigation Support (Plaintiff and Defendant)
― Job Analysis
― Test Development and Test Validation
• BCG’s Software Products
― Adverse Impact Toolkit™
― AutoAAP® affirmative action plan development software
― AutoGOJA® job analysis software
― C4 call center testing software
― COMPARE™ compensation analysis software
― CritiCall® dispatcher/call-taker personnel selection software
― ENCOUNTER soft skills video situational judgment testing software
― OPAC® office skills testing software
― TVAP™ Test Validation & Analysis Program software
www.Biddle.com