- 18 Individual Problems 17 6 The Hr Department Is Trying To Fill A Vacant Position For A Job With A Small Talent Pool V 1 (71.55 KiB) Viewed 28 times
18. Individual Problems 17-6 The HR department is trying to fill a vacant position for a job with a small talent pool. Valid applications arrive every week or so, and the applicants all seem to bring different levels of expertise. For each applicant, the HR manager gathers Information by trying to verify various calms on the candidate's résumé, but some doubt about "fit always lingers when a decision to hire or not is to be made. Suppose that hiring an employee who is a bad for the
company results in an error cost of $800, but falling to hire a good employee results in an error cost of $900 to the
company. Although it is impossible to tell in advance whether an employee is a good fit, assume that the probability that an applicant is a good fit is 0.7, while the probability that an applicant is a "bad file" is 1 -0.7 = 0.3. Hiring an applicant who is a good fit, as well as not hiring an applicant who is a bad fit, results In no error cost to the
company. For each decision in the following table, calculate and enter the expected error cost of that decision. Reality Good Fit Bad Fit Decision p=0.7 p=0.3 Hire Cost: 0 Cost: $800 Do Not Hire Cost: $900 Cost: 0 Expected Error Cost 5 Suppose an otherwise qualified applicant applies for a job. In order to minimize expected error costs, the HR department should the applicant Grade It Now Save & Continue E MacBook Air