Merriam-Webster Dictionary:
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1: a belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race
2: racial prejudice or discrimination
Forumer
Darth Wong succinctly addresses the problem with the belief as laid out in the definition:
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Racism is based on a logical fallacy: the assumption that you can take the average characteristic of a group and assume that it can be used in order to predict the characteristics of any given individual within that group.
Mathematically, suppose you have a Bell curve (group 1) centred around X=500, with a standard deviation of 100, and a second Bell curve (group 2) centred around X=475. The racist would assume that a member of group 2 will have a lower value of X than a member of group 1, and should be treated accordingly. But an individual member of group 2 could quite easily have a higher value of X than a member of group 1, and in fact, the vast majority of the two curves will overlap. Therefore, these kinds of group-based generalizations are useless at the individual level unless the difference in mean values is so great that the majority of the curves do not overlap.