When Lupe Argued That One of the Questions on the Five-Alternative

question 12

Multiple Choice

When Lupe argued that one of the questions on the five-alternative test was unfairly difficult,the teacher simply replied by saying that the item difficulty was optimal at

• A) .50.
• B) .60.
• C) .625.
• D) .70.

---

Definitions:

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management is using a company's assets to create profits.

Cash Coverage Ratio

This is a measure of a company's ability to cover its debt obligations with its available cash and cash equivalents.

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.