EXAMPLE 2.32

A test for job applicants. Your company gives a test of cognitive ability to job applicants before deciding whom to hire. Your boss has asked you to use company records to see if this test really helps predict the performance ratings of employees. The restricted-range problem may make it difficult to see a strong relationship between test scores and performance ratings. The current employees were selected by a mechanism that is likely to result in scores that tend to be higher than those of the entire pool of applicants.