Some Companies Subject Their Applicants to Extensive Tests

question 60

Multiple Choice

Some companies subject their applicants to extensive tests. Why?

• A)To reduce the informational asymmetry between the firm and the applicant.
• B)To screen the applicant to avoid the problem of adverse selection.
• C)To gather more information about the applicant.
• D)All of the above.

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Definitions:

True Score

An individual’s actual score on a variable being measured, as opposed to the score the individual obtained on the measure itself.

Measurement Error

The degree to which a measurement deviates from the true score value.

Measure

A method or tool used for quantifying, assessing, or determining the level, quantity, or capacity of a variable or phenomenon.

Pearson Product-moment

A statistical coefficient expressing the correlation between two variables, measuring the strength and direction of their linear relationship.