A Psychologist Develops a New Test for Measuring a Construct

question 27

Multiple Choice

A psychologist develops a new test for measuring a construct he calls "need for Status." However, another psychologist to whom he shows the test says it looks like a measure of "need for Achievement." What type of evidence does the first psychologist need to collect to persuade the second psychologist?

• A) Internal consistency
• B) Congruent validity
• C) Discriminant validity
• D) Behavioral validation

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Definitions:

Hedged

The strategy of making an investment to reduce the risk of adverse price movements in an asset, typically involving derivatives or similar securities.

Silver Price

The market price for silver at a given time, influenced by factors such as market demand, mining supply, and economic conditions.

Economic Exposure

The extent to which a company's value is affected by unforeseen changes in exchange rates.

Transactions Exposure

The risk of exchange rate changes affecting the value of financial transactions denominated in a foreign currency.