Exercise 3: The research team in your law ï¬rm has been evaluating other law ï¬rms in terms of the effectiveness of their Human Resource Management (hrm). It turns out that hrm is a variable that distributes normally with a mean at 0 and a standard deviation of 2. Since recruiting and retaining talent is a ma jor determinant of competitiveness for law ï¬rms, their revenues (in millions of pounds) depend strongly on how good their HRMs practices are, as captured by the relation: revenues = 4.3 + .4hrm You are thinking of moving to a different law ï¬rm. You have one offer from Bennett & Bennett and another one from Simmons & Curtis. Many factors come into play, including the size of your future employer. Bennett & Bennett has a hrm effectiveness that is better than 95% of the industry, whereas Simmons & Curtis hrm is only better than 45% of the industry. How much higher are the Bennett & Bennett revenues than those of Simmons & Curtis? (Note: this exercise requires the use of statistical tables) • Calculate mathematically the correlation between revenues and hrm
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