BUS 335 Week 9 Quiz– Strayer New



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Quiz 8 Chapter 11 and 12
Student: ___________________________________________________________________________
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

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


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