Statistical procedures for evaluating the practical utility of a moderator approach to prediction

Abstract

Describes 3 statistical procedures for evaluating the practical utility of a moderator approach. Each procedure gives tests of significance for the comparison of 3 prediction strategies: (a) using the moderator variable as a basis for subgrouping Ss and computing separate regression equations, (b) using the moderator variable as a predictor variable, or (c) excluding the moderator variable from the prediction model. It is concluded that when job performance is measured along a continuum, the average y score of the selected group (Procedure 1) should be considered. However, when 2 levels of job performance are measured, (e.g., pass-fail grades) then either the number of selection errors (Procedure 2) or the number of selection errors when a selection ratio constraint is present (Procedure 3) should be used. (PsycInfo Database Record (c) 2025 APA, all rights reserved)