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Zone24x7 is an engineering firm. They are planning to adopt a new IQ test that measures problem solving aptitude of potential employees. They have used

Zone24x7 is an engineering firm. They are planning to adopt a new IQ test that measures problem solving aptitude of potential employees. They have used this new IQ test on a trial basis over the past year while they have continued to make selections using their established procedures. Also, the newly recruited employees took the same IQ test at the end of their first year. Zone24x7 is interested in improving the diversity in the workplace and they also analyized the data from gender, ethnicities etc. The table below is an extract from this information, espeially focusing on ethnic differences.

The following table summarizes the correlation coefficients between

  1. Applicant scores prior to hiring (Test A) and performance rating of the hired applicants at the end of one year of employment (PERFORMANCE)
  2. Test scores of the new hires after the second administration of the test at the end of the year (Test B), and their performance rating at the end of the year (PERFORMANCE)
  3. Applicant scores prior to hiring (Test A) and the test scores of the new hires after the second administration of the test after one year at work (Test B).

Overall

White

Non-white

1

Test A & Performance

.52

.60

.40

2

Test B & Performance

.75

.79

.59

3

Test A & Test B

.70

.80

.60

You are the new Recruitment & Selection specialist for the firm. HR manager has requested your assistance in interpreting this information to see if this new IQ test should be considered as a useful tool in the selection process and whether it should be used by the company moving forward.

a. How would you describe the reliability of the test? Provide a numeric value for the reliability of the test. Is there any significant observations with the reliability values of the test? (4 points)

b. We discussed multiple ways of assessing reliability. What form of reliability assessment is this and why do you so? (2 points)

c. What do you mean by predictive validity? Provide a numeric value for the predictive of the test. Is there any significant observations with the predictive validity of the test? (4 points)

d. What do you mean by concurrent validity? What is the reported concurrent validity of the test? (2 points)

e. Would you recommend that the company adopt the new IQ test as part of their selection procedure moving forward? Why or why not? (2 points)

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