In Order to Determine the Validity of Its Tests, BluTech

question 140

True/False

In order to determine the validity of its tests, BluTech tests applicants and then obtains criterion data after they have been hired and on the job for some indefinite period. BluTech is validating its tests through concurrent validity.

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Definitions:

Construction

The process or industry involved in assembling infrastructure or building structures from individual components.

Tournament Pay

A form of compensation in which the top performer (or performers) receives much higher rewards than do other competitors, even if the others perform at only a slightly lower level.

Compensating Differential

Additional payment or benefit given to an employee to offset or compensate for undesirable aspects of a job.

Base Pay

The initial rate of compensation that an employee receives before any bonuses, benefits, or raises are added.