Estimating Operational Validity Under Incidental Range Restriction: Some Important but Neglected Issues
Brown, Reagan D.; Oswald, Frederick L.; Converse, Patrick D.
Operational validities are important to personnel selection research because they estimate how well a predictor in practical use correlates with a criterion construct, if the criterion measure were purged of measurement error variance. Because range restriction on a predictor or predictor composite creates incidental range restriction on the criterion, existing methodologies offer limited information and guidance for estimating operational validities. Although these effects of range restriction and criterion unreliability could be corrected with existing equations in a sequential fashion, proper use of sequential correction equations is not always as straightforward as it appears. This research reviews the existing equations for correcting validities, outlines the appropriate method for correcting validity coefficients via sequential equations, and proposes a new equation that performs a combined correction for the effects of incidental range restriction and criterion unreliability.