Economists and other financial experts are often hired to assess damages, assuming liability. However liability can sometimes be established or disproven based on statistics.
For example, in a recently affirmed case involving employment discrimination, the application of a simple method failed to provide the Court with information that would likely have changed their decision. The Federal Court (and the Sixth Circuit Court of Appeals) concluded employer discrimination against protected classes occurred based on a simple calculation commonly referred to as the “four-fifths rule” or the “80% rule”. In contrast, more rigorous statistical methods suggest otherwise and the City of Akron, Ohio may have been unfairly penalized. Click here to read more.