The Central Requirement for Any Selection Tests or Assessment Procedures

question 3

True/False

The central requirement for any selection tests or assessment procedures is that they accurately assess the individual's performance, or capacity to perform, the essential components of the job in question safely, efficiently, and reliably.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, discounting future amounts to their present values.

Annual Rate

Typically refers to the interest rate for a whole year, often applied in terms of loans, investments, or savings.

Invests

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Present Value

The present value of a sum of money or sequence of cash flows expected in the future, calculated using a certain rate of return.