What is the estimate for utility given the following information? Training has a continued effect on performance for 3 years; the number of people trained is 100; the true difference in job performance between the average trained and untrained employee in standard deviation units is 1.5; the standard deviation of job performance is $50; and the cost of training each employee is $100.

Question

Quizplus · Accepted Answer

First, we need to calculate the effect size of training, which is the difference in job performance between the average trained and untrained employee in standard deviation units. Since the true difference in job performance between the average trained and untrained employee in standard deviation units is 1.5, the effect size is 1.5.

Next, we can use the formula for computing utility:

Utility = (Effect size) x (Duration of performance) x (Number of employees trained) x (Standard deviation of job performance) / (Cost of training per employee)

Duration of performance is 3 years and the number of employees trained is 100. Plugging in the given values, we get:

Utility = (1.5) x (3) x (100) x ($50) / ($100) = $22,500

Therefore, the estimate for utility is $22,500, which corresponds to option B.

What Is the Estimate for Utility Given the Following Information