Economic gain 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

Economic gain formulas are used to estimate the economic benefit of using a predictor for hiring instead of using random selection. Therefore, option A is the correct answer. Option B is incorrect because economic gain formulas are not used to estimate the economic gain of using random selection. Option C is incorrect because standard deviation does not directly relate to economic gain formulas. Option D is incorrect because economic gain formulas do not directly relate to the validity coefficient.

Economic Gain Formulas Provide the HR Specialist with an Estimate