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.
Misconceptions concerning discount practices, 207. — How limitation of discounting is effected, 210. — Interaction with the tradition against borrowing, 212. — Conclusion. 214.
Abstract During the past year, in 1958, the activities of the Association followed the customary pattern of completion of some projects carried over from earlier years and launching new projects and programs. An exact measurement of progress is neither possible nor necessary. Each year represents only a small segment of the continuing stream of influence on accounting education and research fostered by the Association. The periodical "The Accounting Review," continued to hold its high place in accounting literature and to grow in circulation and influence. The Association has continued its policy of cooperation and cordial relationships with other accounting organizations. Recognition of varying points of view was encouraged by the appointment of non-teaching members to various Association committees. A Committee on By-Laws was appointed during 1958 to consider the creation of the office of president-elect. The recommendations of the committee were approved by the Executive Committee and presented to the members at the annual business meeting for consideration. The establishment of a special fund for a doctoral fellowship program was announced at the annual convention in Syracuse.