Total correct prediction = 80 + 30 = 110
Total number of decision made = 100 + 100 = 200
Hit ratio = Total correct prediction/Total number of decision made
= 110/200 = 55%
No, I don't think 55% hit ratio is impressive. It can be improved.
2. Calculate the false positive ratio by dividing the number of weak applicants
hired as good hires by the total number of hires. What is this percentage?
ANS: Number of weak applicants hired as good hires = 30
Total number of hires = 80 + 30 = 110
False positive ratio = Number of weak applicants hired as good hires/Total number of hires
= 30