Suppose a company is hiring graduates from Harvard and Yale and they want to hire people with very high predicted productivity. All they use to predict productivity is where they went to school and their GPA. There is no difference in average true ability between students at Harvard and Yale. However, while Yale GPAs are excellent predictors of performance at this company, Harvard GPAs are not. The company hires very few graduates and the cutoff for expected productivity is well above average. What will be true about the GPA cutoffs for the two schools?  A. The cutoff for Harvard will be higher. B. The cutoff for Yale will be higher. C. The cutoffs will be the same. D. There is not enough information to answer this question.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose a company is hiring graduates from Harvard and Yale and they want to hire people with very high predicted productivity. All they use to predict productivity is where they went to school and their GPA. There is no difference in average true ability between students at Harvard and Yale. However, while Yale GPAs are excellent predictors of performance at this company, Harvard GPAs are not. The company hires very few graduates and the cutoff for expected productivity is well above average. What will be true about the GPA cutoffs for the two schools? 


A. The cutoff for Harvard will be higher.
B. The cutoff for Yale will be higher.
C. The cutoffs will be the same.
D. There is not enough information to answer this question.

 

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