question archive You have 500 applicants and 350 job openings
You have 500 applicants and 350 job openings
Subject:PsychologyPrice: Bought3
You have 500 applicants and 350 job openings. The validity of your proposed test, the Reilly Statistical Logic test is .40, and the test costs $20 per applicant to administer. You have 1,000 current employees, 800 of whom are satisfactory. The salary for the position is $70,000, and the typical employee stays for about four years. Currently, you are using the Tribble Math Test with a validity of .30 that costs $25 per applicant to administer.
1. On the basis of the Taylor-Russell Tables of I/O psychology, what percentage of future employees will be successful?
2. Using the utility formula of I/O psychology, how much money does your current test, the Tribble Math test, save the company over using no test at all?
