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Is this evidence that the applicant is bad, or good?

This story is real, but I understand if you don't believe it: The year I finished school, all but one of my school's English Lit students failed the state exam (TEE). The only one that passed was the guy coming bottom of the class.

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Depends on what kind of applicant they're looking for. In some roles you may want someone who is not afraid to challenge rules and conventions, in some roles, rules and conventions exist for very important reasons. The preferred balance varies per organization/team/role etc, just as it does for any other attribute of someone's style of work.

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