Suppose That 100 People Applied for a Job and That

question 73

Multiple Choice

Suppose that 100 people applied for a job and that 50 will be selected. The base rate for success on the job is .60 and the applicants would be selected on the basis of a test with a validity of .80. What would the probability of success be given rejection?

• A)44/50
• B)44/60
• C)6/60
• D)16/50

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to changes in the level of production or service activity.

Sales Commission

A payment made to salespersons, often calculated as a percentage of the sales they generate.

Overtime Charges

Additional wages paid to employees for hours worked beyond the standard workweek.

Accounting Numbers

Quantitative data concerning financial transactions, reflecting a company's financial performance and position.