Solves the validity needed to obtain zero net utility under the BCG model.
Usage
break_even_validity(
selection_ratio,
sdy,
n_selected,
tenure,
cost = 0,
baseline_validity = 0
)References
Boudreau, J. W. (1991). Utility analysis for decisions in human resource management. In M. D. Dunnette & L. M. Hough (Eds.), Handbook of industrial and organizational psychology (Vol. 2, pp. 621-745). Consulting Psychologists Press.
Holling, H. (1998). Utility analysis of personnel selection: An overview and empirical study based on objective performance measures. Methods of Psychological Research Online, 3(1), 5-24.
Examples
# Literature: Boudreau (1991); Holling (1998).
# Use the first call as a minimal example; the longer block illustrates
# how to interpret the function in the substantive setting discussed in the literature.
# Minimal example (Boudreau (1991); Holling (1998)).
break_even_validity(.20, 50000, 100, 3, cost = 75000)
#> [1] 0.003571914
# Substantive example (Boudreau, 1991; Holling, 1998).
# Required incremental validity under different costs.
costs <- c(25000, 75000, 150000)
setNames(
break_even_validity(.20, 50000, 100, 3, cost = costs, baseline_validity = .15),
paste0('cost_', costs)
)
#> cost_25000 cost_75000 cost_150000
#> 0.1511906 0.1535719 0.1571438