You have 500 applicants and 250 job openings. The validity of your proposed test, the Reilly Statistical Logic Test, is .40, and the test costs $10 per applicant to administer. You have 1000 current employees, 800 of whom are satisfactory. The salary for the position is $70,000, and the typical employee stays for four years. Currently, you are using the Tribble Math Test with a validity of .30 that costs $15 per applicant to administer. Be sure to show your calculations.

1. On the basis of the Taylor-Russell Tables, what percentage of future employees will be successful? _____________

2. Using the utility formula, how much money does your current test, the Tribble Math Test, save the company over using no test at all? _____________________