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Point Rating Method
In selecting a site of location companies have several objectives, but not all are of equal importance. The relative weight a company assigns to each objective or to each location factor may be represented by the number of points a perfect site would service in each category. Each potential site is then evaluated with respect to every factor a company is looking for and points are assigned for each factor.
The site with the highest total number of points is considered superior to their sites. The drawback of this method is that high score in any factor can overcome a low score in any other factor. Since some factors are considered as important of essential any site that does not have at least a specified number of points for those essential factors will be excluded from further consideration.
One method for establishing whether disparate impact exists in a company's hiring practices involves
State of nature decision S1 S2 S3 D1 250 750 500 D2 300 -250
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