Utility analysis formulas provide the HR specialist with an estimate of ________.
A) the economic gain derived from using a predictor versus random selection
B) the economic gain from using random selection
C) the economic gain of the standard deviation of job performance
D) the economic gain of the validity coefficient

Question

Quizplus · Accepted Answer

Utility analysis formulas are used to estimate the economic gain derived from using a predictor (such as a pre-employment test or assessment) versus random selection. This is calculated by factoring in the validity coefficient (a measure of the relationship between the predictor and job performance), the base rate of job success, and the economic value of job performance. Therefore, option A is the correct answer.

Utility Analysis Formulas Provide the HR Specialist with an Estimate