Deck 11: Decision Making

Question 1

Utility analysis models do not take factors like EEO/AA concerns into account.

Answer 1

True

Question 2

All other things being equal, if a selection specialist must decide between two predictors, the one that causes the least adverse impact would be the best choice.

Answer 2

True

Question 3

A useful predictor is one where the sign of the relationship is consistent with the logic or theory behind the predictor.

Answer 3

True

Question 4

Statistical significance is stated as a probability and indicates a given predictor's chances of yielding similar validity coefficients with different sets of applicants.

Question 5

It is desirable that the denominator of a selection ratio be small.

Question 6

Utility refers to the expected gains to be derived from using a predictor.

Question 7

When deciding whether or not to use a new predictor, the validity coefficient, the base rate, and the selection ratio should be considered in combination, not independently.

Question 8

Practical significance is the sign of a correlation coefficient.

Question 9

The selection ratio is the number of people hired divided by the number of applicants, and it is desirable that this ratio be high.

Question 10

The usefulness of a predictor is determined by the value it adds to the prediction of job success above and beyond the forecasting powers of other available predictors.

Question 11

Research suggests that managers prefer the results of utility analysis to the presentation of simple validity coefficients.

Question 12

If you are using the "economic gains formula," and you have just increased the validity of your selection procedures with no change in cost, your economic gain value should increase.

Question 13

There are no cases in which a predictor has high validity and high adverse impact.

Question 14

In general, the greater the correlation of a given predictor with other predictors of a criterion, the more useful the predictor will be.

Question 15

A significance level of p<0.05 means that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not.

Question 16

The most fundamental concern regarding utility analysis is that it lacks realism.

Question 17

The most difficult factor in the economic gain formula to estimate is "cost per applicant".

Question 18

The base rate is the number of hirees divided by the number of employees.

Question 19

Validity refers to the relationship between predictor and criterion scores.

Question 20

Utility decreases as the number of valid predictors used in the selection process increases.

Question 21

Under which circumstances is "hiring success gain" likely to be optimal?

A) Low selection ratio, low base rate, high validity
B) High selection ratio, high base rate, high validity
C) High selection ratio, low base rate, high validity
D) High selection ratio, low base rate, low validity

Question 22

The _________ method of determining an applicant's score is based on assigning weights by statistical procedures and then adding predictor scores together.

A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Question 23

In assessing cutoff scores, a "false positive" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Question 24

The minimum competency method involves setting the cut score on the basis of the minimum qualifications deemed necessary to perform a job.

Question 25

Multiple regression will be more precise than unit weighting if there is a small number of predictors, low correlations between predictors, and a large sample.

Question 26

The multiple hurdles method of setting a passing score for a job predictor would be a cost efficient method for making decisions about hiring.

Question 27

Which of the following is the most difficult to estimate term in the economic gain formula?

A) Average tenure of employees.
B) Number of applicants.
C) Dollar value of job performance.
D) Cost per applicant.

Question 28

A compensatory approach to selection decisions means that applicants must earn a passing score on each predictor before advancing in the selection process.

Question 29

In establishing procedures for setting cutoff scores, organizations should stress the job-relatedness of the assessment procedure and de-emphasize validity.

Question 30

The _________ method of determining an applicant's score is based on the expert judgment of the manager.

A) multiple regression
B) clinical prediction
C) unit weighting
D) none of the above

Question 31

Validity refers to __________.

A) the number of individuals hired by a predictor
B) the number of individuals hired divided by the number of applicants
C) the relationship between predictor and criterion scores
D) the inverse of the adverse impact ratio

Question 32

The "unit weighting" method of determining the score of a job applicant on an assessment instrument considers the relative importance of each predictor.

Question 33

The clinical prediction method of determining an applicant's score on a job assessment instrument relies on adding the individual predictor scores together to arrive at the applicant's total score.

Question 34

A significance level of p<0.05 in a validity study means _________.

A) that there are fewer than 5 chances in 100 of concluding there is a relationship in the population of job applicants, when in fact, there is not
B) that there are 5 chances in 100 of concluding that there is not a relationship in the population of job applicants, when in fact, there is
C) that the practical significance of the observed relationship is very low
D) that there are fewer than 5 chances in 100 that a predictor has adverse impact

Question 35

Taylor-Russell tables are an effective decision making tool in that they ________.

A) allow for calculating selection ratios
B) enable HR specialists to calculate utility ratios
C) allow simultaneous consideration of a predictor's base rate, selection ratio, and validity
D) help to increase validity coefficients to more acceptable levels

Question 36

When HR specialists state that a new predictor "adds value" to the prediction of job success, they mean that _____.

A) the predictor provides economic benefit to prediction
B) the predictor has a high validity coefficient
C) the predictor adds to the prediction of job success over and beyond the forecasting powers of current predictors
D) the predictor is highly correlated with other predictors, thus increasing efficiency

Question 37

If an HR specialist is assessing the usefulness of predictors in forecasting job success, and it is noted that a given predictor has both high validity and high adverse impact, the HR specialist should conclude ___________.

A) this can never happen and the method of calculating validity must be incorrect
B) this is a common circumstance and the predictor should be used
C) if the predictor is highly correlated with other predictors, this will compensate for adverse impact
D) legal problems could result and alternative predictors should be sought

Question 38

The _________ approach means that selection decisions means that scores on one predictor can make up for low scores on another.

A) multiple hurdles
B) Markov process
C) compensatory model
D) none of the above

Question 39

In assessing cutoff scores, a "false negative" is an applicant who is assessed as not likely to succeed, but who would have been successful if hired.

Question 40

If you are evaluating the usefulness of a given predictor in predicting job success, and you are interested in the value the predictor adds to the prediction of job success, you want to know the predictor's ________.

A) validity coefficient
B) practical significance
C) sign
D) statistical significance

Question 41

When random selection is used to select the finalist to whom a job offer will be made, discretionary assessment methods should be used.

Question 42

In terms of who should participate in selection decision making (i.e., HR professionals vs. line managers), HR professionals would be least likely to ________.

A) make the hiring decision
B) establish selection procedures
C) ensure relevant laws and regulations are being followed
D) represent the interests of employees to management

Question 43

The law prohibits using different norms for test scores of minority and majority groups.

Question 44

In which of the following assessment procedures is the participation of line managers most needed?

A) initial assessment
B) substantive methods
C) discretionary methods
D) background investigations

Question 45

If a cutoff score is lowered, the effect of this on hiring results is likely to be ______________.

A) fewer false negatives only
B) both fewer false negatives and more true positives
C) fewer false negatives and fewer false positives
D) more false negatives and more false positives

Question 46

Ongoing hiring is most common in organizations with very high turnover rates.

Question 47

In ranking finalists are ordered from the most desirable to the least desirable based on the results of discretionary assessments.

Question 48

Applicants react positively when banding is associated with affirmative action.

Question 49

An applicant who is not hired but who would have performed successfully if hired is a ______________.

A) true positive
B) false positive
C) true negative
D) false negative

Question 50

If a cutoff scores is set based on the qualifications deemed necessary to perform a job, it is most likely the ______ method of determining cut scores.

A) top-down
B) criterion-related
C) minimum competency
D) banding

Question 51

When using ___________, finalists are ordered from the most desirable to the least desirable based on results of discretionary assessments.

A) ranking
B) random selection
C) clinical prediction
D) grouping

Question 52

One disadvantage of ranking is that it doesn't provide a clear suggestion of the order in which candidates should be offered jobs.

Question 53

An applicant who is hired but does not perform successfully is a ______________.

A) true positive
B) false positive
C) true negative
D) false negative

Question 54

There is little evidence that individuals who perceive themselves to be overqualified are less satisfied or have higher intentions to turnover.

Question 55

When applicants who score within a certain score range are considered to have scored equivalently ________.

A) top-down
B) criterion-related
C) minimum competency
D) banding

Question 56

In general, HR specialists should orchestrate the development of staffing policies and procedures for all departments, but play a secondary, or supporting role in the ultimate decision to hire in areas outside of the HR department.

Question 57

Since line managers are not usually technical experts in staffing processes, their input comes to play only in regard to hiring decisions.

Question 58

Banding is a procedure whereby applicants who score in different score ranges or bands are considered to have scored equivalently.

Question 59

When using ___________, each finalist has an equal chance of being selected.

A) ranking
B) random selection
C) clinical prediction
D) grouping

Question 60

In top down hiring, all individuals who are above a minimum competency point are hired.

Question 61

The law suggests that unless the organization is under a formal AAP, protected characteristics should not be considered in selection decision making.

Question 62

Uniform Guidelines on Employee Selection Procedures establish guidelines for record-keeping ___________.

A) of applicants' sex
B) of applicants' race
C) for major job categories
D) all of the above

Question 63

If an organization wishes to comply with the law and still increase the diversity of its workforce, it should ___________.

A) de-emphasize selection based on KSAOs
B) use recruitment as a tool for attracting a more diverse and qualified applicant pool
C) use clinical and other subjective prediction methods
D) all of the above

Question 64

The two options the UGESP recommends for minimizing adverse impact are use of within-group norming and banding.

Question 65

If adverse impact occurs because of certain selection procedures, these procedures may be justified under UGESP through validity studies.