THE EFFECT OF CORRELATED ARTIFACTS AND TRUE VALIDITY ON THE ACCURACY OF PARAMETER ESTIMATION IN VALIDITY GENERALIZATION

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 1and 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 ρ ) and (b) only Model 2 produced accurate estimates of the variance of true validities (V ρ ). The need for additional research for accurately estimating V ρ when the three artifacts and true validity are correlated is recommended.