PSYC 3090 Chapter Notes - Chapter 7: Base Rate, Inter-Rater Reliability, Linear Discriminant Analysis

• School: York University
• Department: Psychology
• Course: PSYC 3090
• Professor: Krista Trobst

Document Summary

Practical value of using a test to aid in decision making. Cost effectiveness, saving time, how useful compared to others, comparative utility, clinical utility etc. Utility: in the context of testing and assessment, the usefulness or practical value of testing to improve efficiency. Anything from single test to large-scale testing program that employs a battery of tests. Utility analysis: broadly defined as a family of techniques that entail a cost-benefit analysis designed to yield information relevant to a decision about the usefulness and/or practical value of a tool of assessment. May be used for the purpose of evaluating whether the benefits of using a test outweigh the costs. (cid:373)ost (cid:272)ited appli(cid:272)atio(cid:374) of statisti(cid:272)al de(cid:272)isio(cid:374) theo(cid:396)y is c(cid:396)o(cid:374)(cid:271)a(cid:272)h + glese(cid:396)"s psy(cid:272)hologi(cid:272)al tests and personnel decisions. Decision theory provides guidelines for setting optimal cutoff scores. Employers reluctant to use decision theory-based strategies in their hiring practices because of the complexity of their application and the threat of legal challenges.