Predictive validation is used frequently for employment tests because it is cost-efficient and fast.
Answer the following statement true (T) or false (F)
False
Predictive validation is used infrequently because it is costly and slow. To use this method, a large number of new employees must be hired at the same time without regard to their test scores.
You might also like to view...
Experimental design is the set of experimental procedures specifying the test units and sampling procedures and all of the following except ________
A) specifying the independent variables B) specifying the dependent variables C) specifying the plan for data analysis D) specifying how to control the extraneous variables
M. K. Berry is the managing director of CE Ltd. a small, family-owned company which manufactures cutlery. His company belongs to a trade association which publishes a monthly magazine. The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies which manufacture this type of product. The article contains the following table: Average for all companies in the industryReturn on equity 33%Return on total assets 29%Gross margin percentage 30%Current ratio 1.9:1 Average sale period 37daysAverage collection period 41days?CE Ltd's latest financial statements are as follows:CE Ltd.Income Statementfor the year ended 31 October(in thousands)Sales$900 Cost of goods sold 720 Gross margin 180 Selling and
administrative expenses 55 Interest 15 Net income$110 The country in which the company operates has no corporate income tax. No dividends were paid during the year. All sales are on account.CE Ltd.Balance Sheetsas of 31 October(in thousands) This YearLast YearCurrent assets: Cash$5 $20 Accounts receivable, net 120 110 Inventories 96 80 Noncurrent assets 500 460 Total assets$721 $670 Current liabilities: Accounts payable$147 $206 Noncurrent liabilities: Bonds payable 150 150 Common stock 100 100 Retained earnings 324 214 Total liabilities and stockholders' equity$721 $670 Required:a. Calculate each of the ratios listed in the magazine article for this year for CE, and comment briefly on CE Ltd's performance in comparison to the industrial averages.b. Explain why it could be misleading to compare CE Ltd's ratios with those taken from the article. What will be an ideal response?
To avoid charges of insider trading, executives may use "program trading" on a set time schedule
a. True b. False Indicate whether the statement is true or false
Describe Theory X
What will be an ideal response?