Which statement correctly differentiates disparate impact and discriminatory outcome?

• A. Disparate impact refers to any unfair decision without justification.
• B. Disparate impact refers to statistically significant unequal outcomes across groups.
• C. Disparate impact is about individual fairness, while discriminatory outcome is about group fairness.
• D. Disparate impact equals deliberate discrimination.

Answer: (B)

Disparate impact is about the effects of a policy on different groups, focusing on outcomes rather than intent. It identifies situations where a neutral rule produces statistically significant unequal results across protected groups, signaling an adverse impact that may require justification or corrective measures. This emphasis on outcome and group-level effect is why the statement that disparate impact refers to statistically significant unequal outcomes across groups is the best description.

It isn’t about any unfair decision in isolation, nor does it require deliberate discrimination. It also isn’t about individual fairness, since disparate impact concerns how policies affect groups as a whole. And it isn’t synonymous with deliberate discrimination, because adverse effects can occur without conscious intent.