Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural students. The colleges decide to admit only students applying from rural areas. This policy could be referred to as

1.employer discrimination.
2.statistical discrimination.
3.employee discrimination.
4.consumer prejudice
5.productivity bias.

Statistical discrimination

Explanation:

Statistical discrimination takes place when the different features which can be physically noticed in an individual is used to make diffferent kinds of interpretation about the characteristics that is very essential to the business operation but very hard to detect.

Statistical discrimination could occur in any type of decision such as political decision, employment decision, personal decision.

2.statistical discrimination

Explanation:

Statistical discrimination is a theorized behavior in which racial or gender inequality results when economic agents (consumers, workers, employers, etc.) have imperfect information about individuals they interact with.

An example is labor market discrimination against women, particularly married women, who may not be hired because they are statistically more likely to take time off to raise a family. Another example is racial profiling in law enforcement: minorities are more likely to be pulled over than white drivers.

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disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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