Instructions: Now that you have led the interview team that interviewed candidates for the Executive Director of your organization, you now have the challenge of determining which candidates are good selections for the job.

Your organization has completed candidate interviews for the Executive Director, and you collected and summarized the findings for each candidate. You then contacted industrial psychologists within your industry to identify what test instrument has proven to be the best predictor of future job performance. The Revenue Growth Assessment was suggested by your peers.

Your organization believes that strong fiduciary management is key to successful directors and the most viable candidates need to demonstrate their work history comparing to situational problems on the Revenue Growth Assessment. To test this hypothesis, you administer the Revenue Growth Assessment (RGA) 75 applicants.

You then decide to hire on an interim basis all candidates that scored higher than 3 in lower management positions to see how they perform over the next year, before deciding which of them will be successful as the Executive Director.

Given below are applicant scores on the RGA as well as how many successful transactions that resulted in profitable outcomes in the year.

RGA score # profitable transactions

10 28 21 14 17 10

9 29 11 31 21 18 16 26 20 18 17

8 39 35 34 33 19 26 10 20 20 19 15 14 12 11 31

7 32 26 16 25 24 13 12 21 21 31 20 13 12 33 21

6 32 31 30 29 12 19 18 25 14 23 22 20 10 29 20

5 25 22 21 20 10 33 21 23 29 18

4 27 15 15 27 22

If 20 profitable transactions is the criterion for success, what is the base rate for the managers?________