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:

FMV

The estimated sales price of an asset in the marketplace where both buyer and seller are informed and willing.

Code Sections 1245

Refers to a section of the U.S. Internal Revenue Code that deals with the recapture of depreciation upon the sale of certain types of business property.

Recapture Provisions

Regulations that allow the government to collect taxes on previously deducted or credited investment income when certain assets are sold or disposed of.

Real Property

Land and anything permanently attached to the land, like buildings, is considered real property.