Statistics Regulatory Frameworks & Compliance 4 — Questions and Answers
Question 1: Which concept in survey methodology, required by U.S. federal statistical standards, measures the difference between a survey estimate and the true population value?
- Coefficient of variation
- Bias (Correct answer)
- Response rate
- Weighting factor
Correct answer: Bias
Bias is the systematic difference between a survey estimate and the true population parameter, and federal standards require agencies to assess and minimize it.
Question 2: The SEC's Regulation S-X requires that financial statements be presented using which statistical valuation method for inventory?
- FIFO, LIFO, or weighted average, with disclosure of method used (Correct answer)
- Only FIFO to ensure consistency across registrants
- Fair value measurement regardless of inventory type
- Historical cost method only
Correct answer: FIFO, LIFO, or weighted average, with disclosure of method used
SEC Regulation S-X permits multiple inventory valuation methods but requires registrants to disclose which method they use for comparability.
Question 3: In educational testing, which federal law prohibits using single standardized test scores as the sole criterion for high-stakes educational decisions?
- No Child Left Behind Act
- Every Student Succeeds Act (Correct answer)
- Elementary and Secondary Education Act original 1965 version
- Individuals with Disabilities Education Act
Correct answer: Every Student Succeeds Act
ESSA explicitly prohibits states from using a single assessment as the sole measure for any high-stakes accountability decision.
Question 4: What does the concept of 'analytical completeness' require in regulated statistical reporting?
- Reporting only statistically significant findings
- Reporting all pre-specified analyses regardless of outcome (Correct answer)
- Publishing only analyses with p < 0.05
- Excluding sensitivity analyses from regulatory submissions
Correct answer: Reporting all pre-specified analyses regardless of outcome
Analytical completeness requires reporting all pre-specified analyses to prevent selective reporting bias in regulatory submissions.
Question 5: Under the Americans with Disabilities Act, employers using statistical selection procedures must demonstrate which type of validity?
- Face validity
- Content, criterion, or construct validity (Correct answer)
- Ecological validity
- Convergent validity only
Correct answer: Content, criterion, or construct validity
The EEOC Uniform Guidelines require that any selection procedure with adverse impact demonstrate content, criterion-related, or construct validity.
Question 6: The '4/5ths rule' (80% rule) used by the EEOC is a statistical threshold for detecting what in employment selection?
- Pay equity gaps between genders
- Adverse impact against protected groups (Correct answer)
- Hiring quota compliance
- Sample size adequacy for validation studies
Correct answer: Adverse impact against protected groups
The 4/5ths rule flags adverse impact when a protected group's selection rate is less than 80% of the highest-selected group's rate.
Question 7: Which government agency publishes the 'Standards and Guidelines for Statistical Surveys' that federal agencies must follow?
- Bureau of the Census
- Office of Management and Budget (Correct answer)
- Bureau of Labor Statistics
- National Institute of Standards and Technology
Correct answer: Office of Management and Budget
OMB publishes the Standards and Guidelines for Statistical Surveys, which establish requirements for all federal surveys.
Statistics Regulatory Frameworks & Compliance 4
Which concept in survey methodology, required by U.S. federal statistical standards, measures the difference between a survey estimate and the true population value?