🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
62
views
18 May 2018

5.An investment bank is planning to interview 10 job candidates, randomly chosen from the applicant pool. Individuals differ in their abilities to put together deals and perform other functions that are part of an investment banker

Watch
1
answer
0
watching
62
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jean Keeling
Jean KeelingLv2
20 May 2018

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Strategic Staffing at Atlas Corporation Graphic t-shirt company Atlas Corporation knows that executing its growth strategy depends on promoting from within. Atlas believes that its staffing activities must obtain talent able to do the job being filled and with the potential to advance into management. Because it tends to receive a large number of applications for its job openings, Atlas must also process a large number of applicants for every opening and wants to do so as efficiently as possible. Atlas decides that it wants to capitalize on the trend of using social media to source and recruit. The company opens a Twitter account and starts Tweeting its job openings to people following the company (generally customers hoping for discount offers). It also posts its jobs on Monster.com, a large and popular job board, to try to maximize the number of applications. When job seekers apply for graphic design positions they first complete an online application, and the information is sent to a data base. A recruiter is immediately sent any applications that pass an initial competency screen. Within a few days, the recruiter emails the candidate to request a sample portfolio of the applicant’s work. Because of the size of the files, the portfolios are often rejected by recruiters’ email accounts and the candidate must fax the documents as Atlas has no cloud storage mechanism. Due to the large number of applications, those not passing the initial screen remain in the database unviewed and are not contacted in any way by the company. Applications passing the initial screen are invited to a telepone interview with a recruiter to assess basic job-related competencies. The top 10 candidates are then invited to interview face-to-face with another recruiter to assess their fit with Atlas’ culture and to better assess job-related skills and competencies. The top scoring 5 candidates are then invited to interview with the hiring manager, who makes the final decision on who should receive a job offer. A background check is then performed and if it is passed then a job offer is made. If a candidate declines the offer, the next highest scoring candidate receives a background check and a job offer until no acceptable finalists are left. Atlas evaluates the effectiveness of every staffing effort by evaluating the number of applications it received, the time it took to fill the position, and whether or not one of its first two job offers were accepted.

Questions: 1. What is Atlas doing well with regard to staffing strategically?

2. How could Atlas staff its graphic designer positions more strategically?

3. What would you suggest Atlas do to further enhance the alignment between its staffing function and its need to promote from within?

Individals are of two di §erent abilities: high (H) and low (L). An individual knows his or her own

ability but an employer does not. Employers believe that both types of individuals are equally likely

in the population, and therefore has an initial (prior) belief that an individual is high ability with

probability 1. Before an individual looks for a job, he or she has an opportunity to go to college. 2

Assume that attending college does not change an individualiÌs ability; this problem shows that even in

this circumstance, college can perform a useful social function. The e §ort cost of attending college is

di §erent for individuals of di §erent abilities. In order to attend college, high ability individuals must

expend e §ort 1, and low ability individuals must expend e §ort 1, where a < 3 (this means that a 3a

low ability individual has a higher cost of attending college). Not attending college costs 0. After

observing an individualiÌs education (that is, whether he or she attended college) an employer makes

the individual a job o §er. The wage that the individual receives is equal to the employeriÌs belief that

the individual is high ability, given the level of schooling that the individual has chosen to acquire. For

example, if the employer believes that a college graduate is high ability with probability 2 he will o §er 3

a college graduate a wage of 2 . If he believes that an individal with no college education is high ability 3

with probability 1 , he will o §er an individual without college a wage of 1 : An individualiÌs payo § is 44

equal to his wage, minus the cost of education..

First consider a separating equilibrium. In a separating equilibrium, high ability individuals attend college, but low ability individuals do not.

  1. (a) If the employer observes that an individual did not attend college, what is his belief about the individualiÌs ability? What wage will he o §er individuals who do not attend college?

  2. (b) If the employer observes that an individual did attend college, what is his belief about the indi- vidualiÌs ability? What wage will he o §er individuals who attend college?

  3. (c) Given the wages paid to college graduates and those who do not attend, will the high-ability individual chooose to attend college? (Hint: compare the payo § of attending college for the high ability graduate to the payo § of not attending college)

  4. (d) Given the wages paid to college graduates and those who do not attend, for which values of a will the low-ability individual chooose to attend college? (Hint: compare the payo § of attending college for the low ability graduate to the payo § of not attending college)

  5. (e) In a separating equilibrium, a low ability individual does not attend college. For which values of a is this expectation consistent with the low ability individualiÌs strategy?

    Now, consider a pooling equilibrium in which all individuals attend college; that is, both high and low ability individuals attend college. If some individual were to choose not to attend college, the employer would believe that he or she must be low ability, and would o §er a wage of 0.

  6. (f) If the employer observes that an individual attended college, what is his belief about the individ- ualiÌs ability? What wage will he o §er to college graduates? (Hint: The employer expects that all individuals attend college. This means that attending college conveys no information about the individualiÌs true ability).

  7. (g) Given the wages paid to college graduates (and the wage that would be paid to non-grads) would the high-ability individual choose to attend college? For which values of a would the low ability individual choose to attend college?

  8. (h) In a pooling equilibrium, both high and low ability individuals attend college. For which values of a is this expectation consistent with the individualsiÌstrategies?

    Finally, consider a sem-separating equilibrium in which high-ability individuals attend college (for sure), but low ability students attend college with probability 0 < s < 1:

  9. (i) If the employer sees that an individual attends college what is his belief that the individual is high-ability? What is the wage to college graduates? (Hint: Remember, all high ability individuals attend, but low ability individuals attend with probability s. Divide the probability of an individual being high ability and attending college by the overall probability of an individual attending college).

  1. (j) If the employer sees that an individual did not attend college, what are his beliefs about the individualiÌs ability? (Hint: all high ability individuals attend college)

  2. (k) The low-ability individual is willing to randomize between attending college and not attending college. Use this to Önd the probability that the low-ability individual attends in equilibrium.

    Bonus: Comment on the purpose of college illustrated in this example. How is this purpose a §ected as college becomes easier for the low-ability type (i.e. as a increases)?

Please explain how trade and investment affect economic and social development. Provide an example of a country that had economic and social development from trade and investment. Also, provide an example of a country that receives little to no trade and/or investment and is economically less developed.

Explain and discuss the Theory of Absolute Advantage. How does it differ from the Theory of Comparative Advantage? You may pattern it from your text or other sources, but you are required to make up your own example to show understanding. Please be sure to cite your sources.

Does it make sense for the Gilley family (or any family) to strive to only “buy American”?

Why should managers regularly monitor the BOP of the country in which their business operates? Use the US and China as an example for your response.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in