This paper presents a mathematical model for determining a minimum cost strategy for the following personnel recruiting and selection situation. A quota is set for the minimum number of good employees to be added each period, and selection is done on the basis of a test having a known correlation with the given criterion of job success. There is a total cost for all individuals recruited and a loss attached to each person hired who turns out to be unsatisfactory. The problem is to determine a minimum acceptable score on the selection test and the number of persons to be recruited which will yield a minimum cost, including loss, as well as satisfy the prescribed quota at a given probability level.

Journal Article Credit Policy at the Discount Window: Reply Get access C. R. Whittlesey C. R. Whittlesey University of Pennsylvania Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 73, Issue 2, May 1959, Pages 337–338, https://doi.org/10.2307/1883731 Published: 01 May 1959

Misconceptions concerning discount practices, 207. — How limitation of discounting is effected, 210. — Interaction with the tradition against borrowing, 212. — Conclusion. 214.

JN an article in thisREVIEW in I947, James Tobin' investigated the relationship between interest rates and the quantity of money in this country for the period I9I9-47. His results appeared to conform extremely well to the Keynesian liquidity-preference hypothesis which asserts that the demand for idle balances is a decreasing function of the interest rate, and that the interest-elasticity of demand for idle balances approaches infinity as the interest rate approaches its institutional floor. Tobin's data are shown as the dots in the graph in Chart i.