Situation - You have 100 applicants for 10 job openings. - The validity of your proposed test, the Goldfeder Mental Ability Test, is
.50
, and the test costs
$10
per applicant to administer. - You have 500 current employees, 350 of whom are satisfactory. - The salary for the position is
$85,000
, and the typical employee stays for three years. - Currently, you are using the an internally-developed test with a validity of . 40 that costs
$5
per applicant to administer. 1. \& 2. On the basis of the Taylor-Russell Tables, what percentage of future employees will be successful if using the Goldfeder Mental Ability Test? What about for the internallydeveloped test? 3. Using the utility formula, how much money does your current internally-developed test save the company over using no test at all? (round to nearest dollar and include commas as needed)
$
4. Using the utility formula, how much money does your proposed test, the Goldfeder Mental Ability Test, save the company over using no test at all? (round to nearest dollar and include commas as needed)
$
5. How much money will y the Goldfeder Mental Ability Test save when compared to the internally-developed test? (round to nearest dollar and include commas as needed)
$