A NOTE ON DIRECT RANGE RESTRICTION CORRECTIONS IN UTILITY ANALYSIS

Brogden's equations for employment test utility analysis have been use d in conjunction with direct range restriction correction formulas, be cause the data used typically come from selected applicant (incumbent) samples. We show that the use of direct range restriction corrections in utility analysis is not needed. Identical results can be obtained using a simpler equation that employs a regression coefficient based o n the employee (i.e., restricted or job incumbent) population. This ut ility estimation procedure, which does not employ range restriction co rrections, is derived and discussed. We recommend that this new equati on be used in the practice of selection utility analysis because it no t only provides identical utility estimates to those obtained using cu rrent equations that employ direct range restriction correction formul as, but also is computationally simpler.