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BUS 335 WEEK 9 QUIZ 8 CHAPTER 11,12

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BUS 335 WEEK 9 QUIZ 8 CHAPTER 11,12

True / False Questions
1. Practical significance is the sign of a correlation coefficient.
True    False

2. Validity refers to the relationship between predictor and criterion scores.
True    False

3. A useful predictor is one where the sign of the relationship is consistent with the logic or theory behind the predictor.
True    False

4. Statistical significance is stated as a probability and indicates a given predictor’s chances of yielding similar validity coefficients with different sets of applicants.
True    False

5. A significance level of p<0.05 means that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not.
True    False

6. In general, the greater the correlation of a given predictor with other predictors of a criterion, the more useful the predictor will be.
True    False

7. The usefulness of a predictor is determined by the value it adds to the prediction of job success above and beyond the forecasting powers of other available predictors.
True    False

8. There are no cases in which a predictor has high validity and high adverse impact.
True    False

9. All other things being equal, if a selection specialist must decide between two predictors, the one that causes the least adverse impact would be the best choice.
True    False

10. Utility refers to the expected gains to be derived from using a predictor.
True    False

11. The selection ratio is the number of people hired divided by the number of applicants, and it is desirable that this ratio be high.
True    False

12. It is desirable that the denominator of a selection ratio be small.
True    False

13. The base rate is the number of hirees divided by the number of employees.
True    False

14. When deciding whether or not to use a new predictor, the validity coefficient, the base rate, and the selection ratio should be considered in combination, not independently.
True    False

15. The most fundamental concern regarding utility analysis is that it lacks realism.
True    False

16. If you are using the “economic gains formula,” and you have just increased the validity of your selection procedures with no change in cost, your economic gain value should increase.
True    False

17. The most difficult factor in the economic gain formula to estimate is “cost per applicant”.
True    False

18. Utility analysis models do not take factors like EEO/AA concerns into account.
True    False

19. Research suggests that managers prefer the results of utility analysis to the presentation of simple validity coefficients.
True    False

20. Utility decreases as the number of valid predictors used in the selection process increases.
True    False
Multiple Choice Questions
21. If you are evaluating the usefulness of a given predictor in predicting job success, and you are interested in the value the predictor adds to the prediction of job success, you want to know the predictor’s ________.
A. validity coefficient
B. practical significance
C. sign
D. statistical significance

22. When HR specialists state that a new predictor “adds value” to the prediction of job success, they mean that _____.
A. the predictor provides economic benefit to prediction
B. the predictor has a high validity coefficient
C. the predictor adds to the prediction of job success over and beyond the forecasting powers of current predictors
D. the predictor is highly correlated with other predictors, thus increasing efficiency

23. A significance level of p<0.05 in a validity study means _________.
A. that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not
B. that there are 5 chances in 100 of concluding that there is not a relationship in the population of job applicants, when in fact, there is
C. that the practical significance of the observed relationship is very low
D. that there are fewer than 5 chances in 100 that a predictor has adverse impact

24. Validity refers to __________.
A. the number of individuals hired by a predictor
B. the number of individuals hired divided by the number of applicants
C. the relationship between predictor and criterion scores
D. the inverse of the adverse impact ratio

25. If an HR specialist is assessing the usefulness of predictors in forecasting job success, and it is noted that a given predictor has both high validity and high adverse impact, the HR specialist should conclude ___________.
A. this can never happen and the method of calculating validity must be incorrect
B. this is a common circumstance and the predictor should be used
C. if the predictor is highly correlated with other predictors, this will compensate for adverse impact
D. legal problems could result and alternative predictors should be sought

26. Under which circumstances is “hiring success gain” likely to be optimal?
A. Low selection ratio, low base rate, high validity
B. High selection ratio, high base rate, high validity
C. High selection ratio, low base rate, high validity
D. High selection ratio, low base rate, low validity

27. Which of the following is the most difficult to estimate term in the economic gain formula?
A. Average tenure of employees.
B. Number of applicants.
C. Dollar value of job performance.
D. Cost per applicant.

28. Taylor-Russell tables are an effective decision making tool in that they ________.
A. allow for calculating selection ratios
B. enable HR specialists to calculate utility ratios
C. allow simultaneous consideration of a predictor’s base rate, selection ratio, and validity
D. help to increase validity coefficients to more acceptable levels

29. 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

Determining Assessment Scores
True / False Questions
30. A compensatory approach to selection decisions means that applicants must earn a passing score on each predictor before advancing in the selection process.
True    False

31. The clinical prediction method of determining an applicant’s score on a job assessment instrument relies on adding the individual predictor scores together to arrive at the applicant’s total score.
True    False

32. The “unit weighting” method of determining the score of a job applicant on an assessment instrument considers the relative importance of each predictor.
True    False

33. Multiple regression will be more precise than unit weighting if there is a small number of predictors, low correlations between predictors, and a large sample.
True    False

34. The multiple hurdles method of setting a passing score for a job predictor would be a cost efficient method for making decisions about hiring.
True    False
Multiple Choice Questions
35. The _________ approach means that selection decisions means that scores on one predictor can make up for low scores on another.
A. multiple hurdles
B. Markov process
C. compensatory model
D. none of the above

36. The _________ method of determining an applicant’s score is based on the expert judgment of the manager.
A. multiple regression
B. clinical prediction
C. unit weighting
D. none of the above

37. The _________ method of determining an applicant’s score is based on assigning weights by statistical procedures and then adding predictor scores together.
A. multiple regression
B. clinical prediction
C. unit weighting
D. none of the above

38. The _________ approach means that an applicant must earn a passing score on each predictor before advancing in the selection process.
A. multiple hurdles
B. Markov process
C. compensatory model
D. none of the above

Hiring Standards and Cut Scores
True / False Questions
39. In establishing procedures for setting cutoff scores, organizations should stress the job-relatedness of the assessment procedure and de-emphasize validity.
True    False

40. In assessing cutoff scores, a “false negative” is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.
True    False

41. In assessing cutoff scores, a “false positive” is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.
True    False

42. The minimum competency method involves setting the cut score on the basis of the minimum qualifications deemed necessary to perform a job.
True    False

43. In top down hiring, all individuals who are above a minimum competency point are hired.
True    False

44. There is little evidence that individuals who perceive themselves to be overqualified are less satisfied or have higher intentions to turnover.
True    False

45. The law prohibits using different norms for test scores of minority and majority groups.
True    False

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