Jerrys Pet Supplies is currently using a selection method with a 0.10 validity coefficient and they are
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Jerry’s Pet Supplies is currently using a selection method with a 0.10 validity coefficient and they are interested in introducing a new selection method with a validity coefficient of 0.70. They have decided to perform a utility analysis using the Taylor-Russell Tables to help make this decision. Given the above information in the Taylor-Russell Table, answer the following questions and show your work where applicable.
- What is the hiring success gain for the new predictor when considering the more desirable selection ratio? (2 points)
- What is the hiring success gain for the new predictor when considering the less desirable selection ratio? (2 points)
- Is Jerry’s Pet Supplies current base rate desirable or not desirable? (1 point)
- Considering all of the above, what is your recommendation to Jerry’s Pet Supplies about adopting the new selection method with the validity coefficient of 0.70? (1 point
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Validity coefficient | Selection ratio = .15 | Selection ratio = .65 | |
.10 | 35% | 28% | |
.70 | 68% | 40% |
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