PSY 370 Lecture Notes - Lecture 42: Standard Deviation, Job Performance, Standardized Test
Document Summary
Selection ratio = proportion of people you want to select based on the test. The smaller your selection ratio, the more your test will make a difference. If you aren"t being selective it doesn"t matter who you choose. Allows us to put a dollar value on the utility of a test. Focuses on financial impact in an organizational context. The number of employees hired in a year (n) The correlation of your test with job performance. Can estimate directly, or use 40% of the average employee"s salary as a good guess. Mean standardized test score (z-score) of selected test-takers (zm) Can also estimate this based on selection ratio. ***the larger each of these 5 values, the greater the. Each of these 5 values are multiplied together so they all contribute positively: Cost of testing = (cost per applicant)(number of applicants) *must compute for both current and proposed selection systems and compare.
