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Q. Randy chooses one of two selection methods. The two methods recommended are the interview and a work sample test which entail scooping ice cream and serving it to a customer. Randy estimates which it would cost 100$ to interview an applicant and 150$ per applicant to administer the work sample. Higgins told rand which the validity of the interview is r= .30 while the validity of the work sample is r=.50 the average score of the selection measure of those applicants selected is z=.80 (80 standard deviations above the mean). Wage is 6$ per hour (course of a year 12,000 salary).
1. Elucidate how much money would Randy save using each selection method?
2. If Randy can use only one method, which should he use?
3. If the number of applicants increases to 200 more applicants are coming in everyday, elucidate how will your answers to questions 1 & 2 change?
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