What is the rate of selection error in case

Assignment Help Operation Management
Reference no: EM131723973

A company hired 25 financial consults out of a pool of 100. At the time of hiring the company used a 50 items test consisting of various questions related to financial analysis such as forecasting, calculation of internal rate of return, capital asset pricing model, etc. Those that obtained 70% or more were further subjected to interview and then finally the company hired these 25 people. Six months later, the company realized that 5 of the 25 people were not performing up to the expectations and had to terminate them. Prior to the use of 50-items financial analysis test, the provider of the test had indicated a predictive validity of 0.43 (between test performance and on the job performance). When the company did its own analysis with the 25 candidates that were hired, the same validity coefficient turned out to be 0.35. Based on the above information:

What is the rate of selection error in this case? What information is missing?

Based on the validity coefficient provided by the test provider and your own analysis within the company, what advice would you give the company about the continued use of the test?

Reference no: EM131723973

Questions Cloud

Discuss the role of human intelligence : focus on the role of human intelligence. In your own words, what do you think intelligence is
Create one or more contingency plans : Brainstorm 8 to 10 potential risks for this, quantify them both according to probability and impact, assign responsibility for each major risk
Correlate the improvement in security devices : Correlate the improvement in security devices and the increase in security attacks and address why the attacks continue to increase
Final decisions for a police department : Incorporate the use of Lean Management and statistical analysis in order to make the final decisions for a police department and emergency 911 dispatch system?
What is the rate of selection error in case : What is the rate of selection error in this case? What information is missing?
Find the point that decreases the correlation : Make the plot such that if the outlier were removed, the correlation for the remaining points would be greater than r = 0.7.
Negotiators differ across cultures : Discuss any two of the ways in which negotiators differ across cultures.
Competitive factors and performance objectives : Analyse the relationship between competitive factors and performance objectives, Prepare a set of action points that management can use to build.
Prepare the bank reconciliation at october : On October 31, 2017, Lisik Company had a cash balance per books of $8,946. Prepare the bank reconciliation at October 31

Reviews

Write a Review

Operation Management Questions & Answers

  Explain how an organization creates value

Describe the methodologies to be employed that proposes an organizational change? Define and identify stakeholder groups and their interests or claims on an organization. Explain how an organization creates value? Explain in detail why cultural relat..

  Explain the concept of core values

Explain the concept of core values and include an example. Who defines an organization's core values?

  There are some negotiators who will use dirty tricks

There are some negotiators who will use "dirty tricks" during negotiations to attempt to gain an advantage over the other party.

  Identify types of organizations

Identify types of organizations (or industries) that may need to evaluate strategy more frequently than others. Which types of firms (or industries) can evaluate strategy less frequently? Explain your choices.

  Find the holding period return for an investor

The prices for company A for the first quarter of 2007 are given below. The price of the stock on January 1, 2007 was $120. Find the holding period return for an investor who purchased the stock on

  What are some ways in which training has been influenced

Many organizations are turning to technology to improve employee development programs. What are some ways in which training has been influenced by technology?

  Explain why is it significant to match supply and demand if

why is it important to match supply and demand? if a manager believes that supply and demand will not be equal what

  Explain how behavioral theories about human needs tie

To illustrate the importance of common goals within a group answer the follow questions based on your experiences. What happens in a team project in which two members of a group want to make an “A” grade on their assignment and the other two members ..

  Gas processing plant has vat of industrial lubricant

A gas processing plant has a vat of important industrial lubricant for the machinery at the plant. Since an external supplier is responsible for maintaining the inventory of the lubricant, the supplier has a sensor set up on the vat that sends them a..

  What proportion must setup cost change

If a factory wants to cut its current lot size in half, by what proportion must setup cost change?

  Positive long-term benefits for both a company and society

Explain the concept of CSR and how it can have positive long-term benefits for both a company and society. Is global marketing more challenging than single country marketing? In a brief essay, explain why or why not.

  Normal for an airline to overbook a flight

It’s normal for an airline to overbook a flight by 20% or so, but Amtrak will overbook its longdistance trains only by 5% to 10%, even though they have even more noshows than the airlines do. What reasons would Amtrak have for overbooking so little? ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd