The Process in Which a Test or Battery of Tests

question 51

Multiple Choice

The process in which a test or battery of tests is administered to a different sample (drawn from the same population) for the purpose of verifying the results obtained from the original validation study is called

• A)redundancy validation.
• B)repeat validation.
• C)cross-validation.
• D)inferential validation.

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Effective Interest Rate

The actual cost of borrowing or the actual return on investment, taking into account the effect of compounding interest as opposed to the nominal rate.

Amortization

The gradual reduction of a debt over a period of time by periodic payments of principal and interest sufficient to repay the loan by maturity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.