Use of Minimum Cutoff Scores Rather Than Top-Down Selection May

question 16

Multiple Choice

Use of minimum cutoff scores rather than top-down selection may result in:

• A)less workforce diversity.
• B)fewer qualified applicants.
• C)lower job performance.
• D)lower labor costs.

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Definitions:

Present Value of An Annuity

The current worth of a series of future payments or receipts, discounted at a specific interest rate.

Net Present Value

A calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account to analyze the profitability of investments.

Profitability Index

A financial metric that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.