It's known that segregation indices calculated using ACS tract data can be upwardly biased (see Napierala and Denton (2017) for a discussion of how the dissimilarity index can be biased: 10.1007/s13524-016-0545-z, Logan 2018, Reardon et al 2018 for discussion of other segregation indices, and bias-adjusted estimates, in context of income segregation).
My question is - How would the margin of error in ACS affect the isolation index? The isolation index is "a minority-weighted average of the minority proportion in each area" (details of it here: https://www.census.gov/topics/housing/housing-patterns/guidance/appendix-b.html)