The effect of non-zero intercorrelations among the three artifacts (criterion reliability, predictor reliability, and range restriction on the predictor) and true validity on the accuracy of estimation in two validity generalization models (Model 1 and Model 2) was investigated. Only the Thylor Series Approximation 1 (TSA1) procedure from Model 1 and the procedure with complete sample-based artifact data from Model 2 were included in this study. Six intercorrelation conditions (zero, low positive, medium positive, low negative, low negative and positive, and medium negative and positive) and two distributions of artifacts were used in this investigation. The two major conclusions from this study are: (a) Both models yielded reasonably accurate estimates of the mean of true validities (M,) and (b) only Model 2 produced accurate estimates of the variance of true validities (V,). The need for additional research for accurately estimating V, when the three artifacts and true validity are correlated is recommended.
The generalizability of an empirical result is a critical issue in all scientific research. In the field of industrial and organizational psychology, one generalizability issue, namely, predictor-criterion relationships in personnel selection, has been the focus of much research over the last 15 years. In their seminal paper, Schmidt and Hunter (1977) proposed a model and a procedure for assessing the generalizability of validity across populations. Their model for validity generalization (VG) may be expressed as Portions of this paper were previously presented at the 1995 Academy of Management The authors express their appreciation to three anonymous reviewers for their helpful Correspondence and requests for reprints should be addressed to Nambury S. Raju, Annual Meeting Vancouver, BC. comments. Institute of Psychology, Illinois Institute of Technology, Chicago, IL 60616-3793. COPYRIGHT 0 1990 PERSONNEL PSYCHOLOGY, INC 453 454 PERSONNEL PSYCHOLOGY U rxy = p l y 6 6 dl + (.2 -qp$pxxpgy + e l PIwhere T ,~ is the observed correlation between the predictor (2) and criterion (y), pxy is the unattenuated and unrestricted population correlation between 2 and y (also referred to as the true validity), pxx and pyy are the unrestricted population reliabilities of 2 and y, respectively, u is the ratio of restricted population standard deviation to unrestricted population standard deviation on the predictor, and e is the sampling error. A major goal of VG analysis is the estimation of the mean (M,) and variance (V,) of true validities across populations. Five different procedures are currently available for estimating M, and V,. These procedures, based on the VG model (Model 1) given in Equation 1 above, are the interactive procedure (Pearlman, Schmidt,