Organization T Uses a Decision-Making Model in Which an Applicant

question 19

Multiple Choice

Organization T uses a decision-making model in which an applicant is allowed to score poorly in one area of the selection tests, as long as he or she scores very high in another area. What is this type of decision-making model called?

• A) a statistical model
• B) a multiple hurdle model
• C) a compensatory model
• D) a multiple cutoff model

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Definitions:

Net Operating Income

Profit derived from a company's operations after all operating expenses have been deducted from total revenue.

Unit Sold

The total quantity of units of a product that have been sold in a given period.

Contribution Margin Ratio

The contribution margin ratio measures the proportion of revenue remaining after variable costs are deducted, indicating the percentage of sales that contributes to fixed costs and profit.

Fixed Monthly Expenses

Expenses that do not change in total regardless of the level of activity, production, or sales within a given month.