Which of the Following Statements About the Utility of Selection

question 20

Multiple Choice

Which of the following statements about the utility of selection devices is true?

• A)A valid test is all one needs to demonstrate the utility of a selection device.
• B)Ideally,companies should aim to have the highest selection ratio possible.
• C)The biggest possible gain in forecasting the accuracy of selection is when the baserate is between 0% and 40%.
• D)The best situation occurs when the baserate is 50% and the selection ratio is low.

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Definitions:

Sales Revenues

Income received from selling goods or services over a period of time before any costs or expenses are deducted.

Capital Cost Allowance

A form of tax depreciation that allows businesses in Canada to deduct the cost of a depreciable property over several years.

Cash Operating Costs

Expenses associated with the day-to-day operations of a business that are paid out in cash.

Tax Rate

The percentage at which an individual or corporation is taxed by a government entity.