### Business process-structured interviews-mental ability test

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A company used three different selection methods to select entry level business process analyst: 1. Structured interviews (validity coefficient 0.62) 2. Mental Ability Test (validity coefficient 0.54) 3. Work sample (validity coefficient 0.50). A total of 120 job applicants were given the test and they hired 25 applicants for the position. The intelligence test cost the company \$22 per person, the work sample test costs the company \$40 per person, and the structured interviews cost the company \$55 per person. The standardized score (z-score) of the 25 applicants (selected for the position) on the intelligence test was 0.72, structured interviews 0.82, and for work sample test 0.63. The standard deviation of job performance expressed in dollars for the 25 applicants was \$8,000. Given this data, calculate the utility of the three different selection methods and make recommendation to the company as to which one they should use for the future. Assume that 200 applicants applied for the job instead of 120 and the company hired 25 of the 200. What happens to the utility using these different methods? Show your calculations as an appendix (this does not count towards the 2 pages limit).

The formula for utility is: Ns*rxy*SDy*Zx-Nt(C) where

Ns = Number of applicants selected for the position

rxy = Validity coefficient of the selection method

SDy = Standard deviation of job performance expressed in dollar terms

Zx = Average test score of those selected expressed in standardized unit (z-scores)

Nt = Total number of applicants

C = Cost of assessing each applicant

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