Question
A startup company has received a major new government contract and needs to hire 50 data analysts.They post a position announcement which, among other details,
A startup company has received a major new government contract and needs to hire 50 data analysts.They post a position announcement which, among other details, lists a starting salary of $90,000.They received 100 applications for the position.A human resources consultant recommends that the startup use a data analytics knowledge test, which costs $200 per test taker,as part of the hiring process.The developers of this test list its predictive validity as 0.5.The startup uses the test for all applicants and finds that the average Z (standard) score of the 50 they plan to hire is 1.25.
What is the expected gain if the firm uses this knowledge test in the selection process?(Note, do not put a $ nor commas in your answer - just numbers)
Utility = NSrxySDyZx - NTC
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