Reference no: EM132747096
Smart Bot Ltd. is a 10-year old company that designs and implement data analytics solutions for small and medium size logistics companies. Smart Bot observed that the data needs of small and medium enterprises (SMEs) are often neglected by the large information technology companies and position their products to plug this gap. Due to its niche services, the company has grown rapidly and has a major market share in the SME market segment. To fuel its rapid growth, the company is constantly on the lookout for programmers as programmers are a critical human resource for Smart Bot. The main sourcing channels employed are employee referrals, online job boards like LinkedIn and industry networking events. Annual employee turnover of programmers in Smart Bot is high as many of the new hires fail to meet expectation during their probation.
Mary, the new Human Resource Manager, want to improve hiring to reduce the cost of turnover. She decides to validate the programming skills test used to select new hires. She retrieves the test data of 30 incumbent programmers and conducts a regression study to examine if the test scores predict job performance one year later.
The regression equation with job performance as the criterion (Y) and test scores as the predictor (X) is as follows:
y = 1.215x + 33.75
Age Programming Test Job Performance
Age 1.0
Programming Test 0.22 1.0
Job Performance 0.19 0.79 1.0
Note: Correlations in bold indicate statistical significance at a level of p<0.05
Gender Number scoring above 43 Total taken the test
Females 7 12
Males 13 18
Total 20 30
Race Number scoring above 43 Total taken the test
Chinese 6 9
Indian 8 11
Malay 6 10
Total 20 30
Problem (a) Interpret the relationship between employees' scores on the programming test and their performance ratings.
Problem (b) Determine the predicted job performance of a job candidate who scored 45 on the programming skills test.