Question 1

Under which circumstances is "hiring success gain" likely to be optimal?
A) Low selection ratio, low base rate, high validity
B) High selection ratio, high base rate, high validity
C) High selection ratio, low base rate, high validity
D) High selection ratio, low base rate, low validity

Accepted Answer

Hiring success gain is optimal when there is a low selection ratio, low base rate, and high validity. This is because a low selection ratio means there are fewer applicants per job opening, which makes it easier to identify the best candidates. A low base rate means that the proportion of qualified candidates is low, which makes it more valuable to identify and hire the best candidates. High validity means that the selection process accurately identifies the best candidates. Therefore, in this scenario, hiring success gain would be highest because there is a greater chance of selecting the best candidates from a smaller pool of applicants.

Question 2

The _________ method of determining an applicant's score is based on assigning weights by statistical procedures and then adding predictor scores together.
A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Accepted Answer

Multiple regression is the method of assigning weights to different predictors based on statistical procedures and then adding them together to determine an applicant's score. This allows for a more objective and standardized approach to evaluating candidates. Clinical prediction may be subjective and prone to biases, while unit weighting does not take into account the varying importance of different predictors.

Question 3

In assessing cutoff scores, a "false positive" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Accepted Answer

A "false positive" in this context would be an applicant who is assessed as likely to succeed (and thus potentially hired), but who would not have been successful if hired.

Question 4

The minimum competency method involves setting the cut score on the basis of the minimum qualifications deemed necessary to perform a job.

Accepted Answer

This is a correct statement about the minimum competency method.

Question 5

Multiple regression will be more precise than unit weighting if there is a small number of predictors, low correlations between predictors, and a large sample.

Accepted Answer

Multiple regression is more precise than unit weighting when there are multiple predictors, high correlations between predictors, and a small sample size. When there are only a small number of predictors, low correlations between them, and a large sample size, unit weighting may be sufficient and multiple regression may not provide any significant improvement in precision.

Question 6

The multiple hurdles method of setting a passing score for a job predictor would be a cost efficient method for making decisions about hiring.

Accepted Answer

The multiple hurdles method sets a minimum passing score for each predictor, ensuring that candidates meet certain requirements before advancing to the next step in the hiring process. This method can be cost efficient because it allows employers to quickly screen out candidates who do not meet the minimum qualifications, saving time and resources in the long run.

Question 7

Which of the following is the most difficult to estimate term in the economic gain formula?
A) Average tenure of employees.
B) Number of applicants.
C) Dollar value of job performance.
D) Cost per applicant.

Accepted Answer

The dollar value of job performance is the most difficult to estimate as it requires a subjective assessment of the impact of an employee's work on the business's bottom line. Other factors such as average tenure of employees, number of applicants, and cost per applicant can be easier to measure through data analysis and market research.

Question 8

A compensatory approach to selection decisions means that applicants must earn a passing score on each predictor before advancing in the selection process.

Accepted Answer

A compensatory approach allows for an applicant to excel in some areas and make up for weaknesses in others, rather than requiring a passing score on every predictor.

Question 9

In establishing procedures for setting cutoff scores, organizations should stress the job-relatedness of the assessment procedure and de-emphasize validity.

Accepted Answer

Organizations should stress both job-relatedness and validity in establishing procedures for setting cutoff scores. Validity ensures that the assessment procedure is measuring what it is intended to measure, while job-relatedness ensures that the assessment is relevant to the specific job tasks and requirements. Both factors are important for ensuring fairness and effectiveness in the selection process.

Question 10

The _________ method of determining an applicant's score is based on the expert judgment of the manager.
A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Accepted Answer

The clinical prediction method relies on the judgment of the manager or interviewer, taking into account personal opinions and impressions of the candidate. Multiple regression, on the other hand, involves the use of statistical formulas and data to predict an applicant's success, while unit weighting assigns a predetermined number of points to various factors or criteria. Therefore, B is the best choice as it accurately describes the clinical prediction method.

Question 11

Validity refers to __________.
A) the number of individuals hired by a predictor
B) the number of individuals hired divided by the number of applicants
C) the relationship between predictor and criterion scores
D) the inverse of the adverse impact ratio

Accepted Answer

Validity refers to the relationship between predictor and criterion scores, meaning how well the predictor (such as a test or assessment) can predict performance on a particular criterion (such as job performance or academic success).

Question 12

The "unit weighting" method of determining the score of a job applicant on an assessment instrument considers the relative importance of each predictor.

Accepted Answer

The "unit weighting" method assigns equal weights to all predictors, not considering the relative importance of each predictor.

Question 13

The clinical prediction method of determining an applicant's score on a job assessment instrument relies on adding the individual predictor scores together to arrive at the applicant's total score.

Accepted Answer

The answer of The clinical prediction method of determining an...

Question 14

A significance level of p<0.05 in a validity study means _________.
A) that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not
B) that there are 5 chances in 100 of concluding that there is not a relationship in the population of job applicants, when in fact, there is
C) that the practical significance of the observed relationship is very low
D) that there are fewer than 5 chances in 100 that a predictor has adverse impact

Accepted Answer

A significance level of p<0.05 means that there is a 5% chance (or fewer than 5 chances in 100) of concluding there is a relationship in the population of job applicants, when in fact, there is not. This is the threshold commonly used in social science research to determine statistical significance.

Question 15

Taylor-Russell tables are an effective decision making tool in that they ________.
A) allow for calculating selection ratios
B) enable HR specialists to calculate utility ratios
C) allow simultaneous consideration of a predictor's base rate, selection ratio, and validity
D) help to increase validity coefficients to more acceptable levels

Accepted Answer

Taylor-Russell tables help in simultaneously considering a predictor's base rate, selection ratio, and validity, making it an effective decision-making tool. It does not calculate selection ratios (A) or utility ratios (B). It also does not increase validity coefficients (D) but rather provides a more accurate estimate of a predictor's validity.

Question 16

When HR specialists state that a new predictor "adds value" to the prediction of job success, they mean that _____.
A) the predictor provides economic benefit to prediction
B) the predictor has a high validity coefficient
C) the predictor adds to the prediction of job success over and beyond the forecasting powers of current predictors
D) the predictor is highly correlated with other predictors, thus increasing efficiency

Accepted Answer

When HR specialists say that a new predictor "adds value" to the prediction of job success, they mean that the predictor adds to the prediction of job success beyond the powers of current predictors. It's not just about economic benefit (A) or high validity coefficient (B), nor is it about the predictor being highly correlated with other predictors (D). Adding value means that the new predictor is improving the prediction of job success beyond what current predictors are capable of.

Question 17

If an HR specialist is assessing the usefulness of predictors in forecasting job success, and it is noted that a given predictor has both high validity and high adverse impact, the HR specialist should conclude ___________.
A) this can never happen and the method of calculating validity must be incorrect
B) this is a common circumstance and the predictor should be used
C) if the predictor is highly correlated with other predictors, this will compensate for adverse impact
D) legal problems could result and alternative predictors should be sought

Accepted Answer

High validity means that the predictor is effective in forecasting job success, but high adverse impact means that it discriminates against certain groups of people. This can potentially lead to legal problems and alternative predictors should be sought to avoid discrimination.

Question 18

The _________ approach means that selection decisions means that scores on one predictor can make up for low scores on another.
A) multiple hurdles
B) Markov process
C) compensatory model
D) none of the above

Accepted Answer

The compensatory model is the approach that allows for scores on one predictor to make up for low scores on another predictor, whereas the multiple hurdles model requires minimum scores on each predictor and the Markov process is a statistical model used in forecasting.

Question 19

In assessing cutoff scores, a "false negative" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Accepted Answer

A false negative is an error in which an applicant is wrongly identified as not likely to succeed, but actually would have been successful if hired.

Question 20

If you are evaluating the usefulness of a given predictor in predicting job success, and you are interested in the value the predictor adds to the prediction of job success, you want to know the predictor's ________.
A) validity coefficient
B) practical significance
C) sign
D) statistical significance

Accepted Answer

The answer of If you are evaluating the usefulness of...

Quiz 11: Decision Making

Under which circumstances is "hiring success gain" likely to be optimal?

The _________ method of determining an applicant's score is based on assigning weights by statistical procedures and then adding predictor scores together.

In assessing cutoff scores, a "false positive" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

The minimum competency method involves setting the cut score on the basis of the minimum qualifications deemed necessary to perform a job.

Multiple regression will be more precise than unit weighting if there is a small number of predictors, low correlations between predictors, and a large sample.

The multiple hurdles method of setting a passing score for a job predictor would be a cost efficient method for making decisions about hiring.

Which of the following is the most difficult to estimate term in the economic gain formula?

A compensatory approach to selection decisions means that applicants must earn a passing score on each predictor before advancing in the selection process.

In establishing procedures for setting cutoff scores, organizations should stress the job-relatedness of the assessment procedure and de-emphasize validity.

The _________ method of determining an applicant's score is based on the expert judgment of the manager.

Validity refers to __________.

The "unit weighting" method of determining the score of a job applicant on an assessment instrument considers the relative importance of each predictor.

The clinical prediction method of determining an applicant's score on a job assessment instrument relies on adding the individual predictor scores together to arrive at the applicant's total score.

A significance level of p<0.05 in a validity study means _________.

Taylor-Russell tables are an effective decision making tool in that they ________.

When HR specialists state that a new predictor "adds value" to the prediction of job success, they mean that _____.

If an HR specialist is assessing the usefulness of predictors in forecasting job success, and it is noted that a given predictor has both high validity and high adverse impact, the HR specialist should conclude ___________.

The _________ approach means that selection decisions means that scores on one predictor can make up for low scores on another.

In assessing cutoff scores, a "false negative" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

If you are evaluating the usefulness of a given predictor in predicting job success, and you are interested in the value the predictor adds to the prediction of job success, you want to know the predictor's ________.