People, most of whom clearly are not that good at math, are being really harsh on Paul Graham. Graham is mostly right, but slightly incorrect. In particular, suppose group A has the distribution f(x) and B has the distribution g(x). If f(x) and g(x) are shaped significantly differently past the cutoff , then mean(H(x-C)f(x)) and mean(H(x-c)g(x)) might not agree even though there is no bias by construction. (Here H(x)…
In a grandchild comment, you note that how close the min of each group is to the cutoff depends on sample size. This is true, but I think it's deal-breakingly true. Suppose we have to input groups, A and B. Members of each group are distributed as Exp(1), ie same underlying distribution. Our selection procedure is totally fair as well: we take everyone without question. However, there are 9x as many people in group A…
Secondly, I calculate a p-value for this test here:
https://news.ycombinator.com/item?id=10484309
It's proportional to the smaller of the sample sizes. I'll have a more detailed writeup soon. Also, this test is non-parametric, so you don't actually need to know either C or the distributions f and g - all you need is a certain level of uniform regularity in f and g.