PSY 370 Lecture Notes - Lecture 15: Standard Deviation, Unstructured Interview, Decision Theory
Document Summary
Utility: a good test is not only reliable and valid but also useful, utility = usefulness or practical value of a test. Usually, for making decisions: like validity. Not a single, simple formula: reliability is necessary but not sufficient for validity. Can"t always be looked at through the scope of profits: possible costs. There are costs involved in making the wrong decision! Your gut is not a good judge! Decision theory: how often would we make the right decisions using this test? , we want to maximize successes and avoid misses! Decision theory: how often would we make the right decision using this test? . There"s a positive correlation for the data. You will choose a minimum acceptable performance: a cut score. Cut into 4 quadrants (looks like a present) E. g. , hit, miss, false neg/pos : trying to maximize the accuracy of our prediction.
