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A type 1 error in statistical hypothesis testing is when the null hypothesis is true, but is rejected. This means that the test falsely concludes that there is a significant difference or effect when there is none. The probability of making a type 1 error is denoted by alpha, which is also known as the significance level of the test. A type 1 error can be reduced by choosing a smaller alpha value, but this may increase the chance of making a type 2 error, which is when the null hypothesis is false but fails to be rejected. References: [Type I and type II errors - Wikipedia], [Type I Error and Type II Error - Statistics How To]

Preexisting bias is a type of bias that originates from historical or social contexts, such as stereotypes, prejudices, or discriminations. Preexisting bias can affect the data or the algorithm used for machine learning, as well as the outcomes or decisions made by machine learning. Preexisting bias can cause unfair or harmful impacts on certain groups or individuals based on their attributes, such as gender, race, age, or disability3. In this case, the software that uses machine learning generates lower employability scores for women and predicts that women, especially with children, are less likely to get a high-paying job. This indicates that the software has preexisting bias against women, which may reflect the historical or social inequalities or expectations in the labor market.

Logit-transformation is a common way to transform proportion data into a continuous variable that can be used for linear regression. However, one concern with this approach is that noisy data could become more influential in your model. This is because logit-transformation tends to amplify the values close to 0 and 1, which are also the values that are likely to be affected by measurement errors or outliers. This could distort the relationship between the dependent and independent variables and bias the regression coefficients. References: [Logit Transformation | Real Statistics Using Excel], [Logit transformation for proportions - Cross Validated]