Why Is Evidence for Criterion-Related Validity Gathered

question 35

Multiple Choice

Why is evidence for criterion-related validity gathered?

• A)It is legally required.
• B)It is critical for reliability.
• C)Tests serve as a substitute for the real measure of interest.
• D)Criterion validity subsumes all other validity.

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Definitions:

Common Shares

are equity securities that represent ownership in a corporation, entitling holders to a share of the corporation's profits through dividends and/or capital appreciation.

Consolidated Financial Statements

Financial statements that show the financial position and results of operations for a parent company and its subsidiaries as one economic entity.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within a business's normal operating cycle if longer.

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and all other costs necessary to bring the asset to a condition ready for its intended use.