When the New York City Test Used in the Recruitment

question 6

Short Answer

When the New York City test used in the recruitment of firefighters was questioned because it appeared to disproportionately exclude African Americans and Hispanics from the fire service,the test's _______________ validity was at issue.

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Definitions:

Cost-Based Pricing

A strategy for setting prices where a specific additional amount is added to the product's unit cost to determine the sale price.

Underpriced Products

Items sold at a price below their market value or cost of production, potentially leading to losses or reduced profit margins for the seller.

Absorption Cost

A method of costing that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the cost of a product.

Mark-Up Percentage

The percentage added to the cost of goods to cover overhead and profit.