Which of the Following Is a Problem of Test Validity

question 38

Multiple Choice

Which of the following is a problem of test validity?

• A) When test responses are depend on recent events.
• B) When test questions are vague.
• C) When test responses do not reflect the hypothetical constructs being measured.
• D) When similar test responses cannot be obtained in a second testing.

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Definitions:

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a one percent change in sales.

Total Revenue

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Sensitivity Analysis

Sensitivity Analysis is a financial modeling technique that examines how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Scenario Analysis

A technique used in finance to evaluate possible future events by considering alternative possible outcomes (scenarios).