Hypothesis Testing when Data Sources are Uncertain

The Justice Department and the Consumer Financial Protection Bureau used BISG to find Ally Financial and Ally Bank guilty of bias in auto loans. Federal authorities claim to use BISG tools in their investigations with no details on how this tool is being used. In this article, we develop different ways to use the BISG in order to test for disparity. This article offers methods that use the highest probability provided by the BISG as well as a method that uses all the probabilities coming from BISG.