Deck 11: Decision Making

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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 7

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

Question 8

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

Question 9

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 10

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

Question 11

Practical significance is the sign of a correlation coefficient.

Question 12

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 13

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 14

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 15

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.

Question 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

Validity refers to the relationship between predictor and criterion scores.

Question 21

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

Question 22

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

Question 23

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 24

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 25

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

Question 26

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

Question 27

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 28

Applicants react positively when banding is associated with affirmative action.

Question 29

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

Question 30

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 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

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 38

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

Question 39

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

Question 40

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 41

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 42

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 these

Question 43

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 44

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 45

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

Question 46

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 47

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 48

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 49

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 50

The _________ approach means that an applicant must earn a passing score on each predictor before advancing in the selection process.

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

Question 51

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 52

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 53

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 54

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 these

Question 55

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 56

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 57

Economic gain formulas provide the HR specialist with an estimate of _______.

A) the economic gain derived from using a predictor versus random selection
B) the economic gain from using random selection
C) the economic gain of the standard deviation of job performance
D) the economic gain of the validity coefficient

Question 58

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

Question 59

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

Question 60

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 these

Question 61

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 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 these

Question 63

Which of the following statements is a useful guideline for setting cutoff scores?

A) Cutoff scores should be consistent with normal expectations of acceptable proficiency within the workforce.
B) The job relatedness of assessment procedures should not be correlated with validity.
C) A single "best" method of setting cutoff scores should be identified.
D) Cutoff scores should be set to maximize true positives.

Question 64

Employees are most likely to be involved in hiring decision making if they are organized in ___________.

A) solo work
B) functional harmony
C) teams
D) none of these

Question 65

When using ____________,finalists are banded together into rank-ordered categories.

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

Question 66

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 67

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 68

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 69

If an organization wish 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 these

Question 70

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

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