To Use Predictive Validation, One Administers the Test to Applicants

question 16

True/False

To use predictive validation, one administers the test to applicants before they are hired. The applicants are then hired using existing selection techniques but not the new tests in development. Later, job performance measures are compared to the test scores under development.

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Definitions:

Marginal Cost

The rise in overall expenses resulting from the production of an additional unit.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Competitive Price-searcher

A market participant that actively seeks out and compares prices in order to find and exploit competitive price advantages.

Marginal Revenue

The revenue gain from selling one more unit of a good or service.