Scenario 5.6: Consider the Information in the Table Below, Describing Choices for Choices

question 27

Multiple Choice

Scenario 5.6:
Consider the information in the table below, describing choices for a new doctor. The outcomes represent different macroeconomic environments, which the individual cannot predict.

-Refer to Scenario 5.6. The expected utility of income from research is:

• A) u($275,000).
• B) u($95,000).
• C) [u($500,000) + u($50,000)]/2.
• D) .1 u($500,000) + .9 u($50,000).
• E) dependent on which outcome actually occurs.

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Definitions:

Parallel Forms

A method of reliability assessment in psychometrics where two different versions of a test are used to measure the same construct, to check for consistency.

Interrater

Relates to the degree of agreement among independent observers or raters evaluating the same phenomenon.

Predictive Validity

The extent to which a score or measurement can accurately predict future performance or behavior.

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure.