Question

Discuss the correlationshup between two randkm variables of credit scores and employee selection, and why employers look at then to determine whether or not they should be hired

Answer 1

Problem Statement: To find correlation between two random variables and the reason for that observed relation

Solution: Let us consider two random random variables X and Y

X = Credit Score

Y = Employee Selection

Relation between X and Y is Positive . i.e. If Credit score is high, it reflects in good performance and positive workplace behavior in companies according to Whitman.

Reason for Employers to look in to Credit score while selecting employees:

According to Whitman, credit score reflects "task performance" and "citizenship behavior" of an employee. So, employee having an high credit score means having high task performance and high citizenship behavior which in turn reflects to good performance and positive work place behavior.

Due to above reasons employers look in to credit score during selecting employees, however this doesn't mean credit score is the only parameter that employers should look in while selecting employees.