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A forensic psychologist is attempting to assess the validity of a new test of police aptitude. The test is given to a random sample of first-day trainees during their orientation session at the police academy. At the end of the 2 month training program each subject is evaluated by the academy's director and rank-ordered on the basis of overall proficiency. The data follow.
-Is this a valid test? . Point out to your students that this is actually a positive correlation as far as the validity is concerned. The only reason the negative sign appears is because in the ranking process, the highest score gets a 1 (a metrically low number) and the lowest score gets a 10 (a metrically higher number). Ask your students to rank order the test scores, and then again compute the Spearman, using only the two sets of ranks. At that point, that correlation of -.733 now has a positive sign.
Marketing Mix
A combination of factors that can be controlled by a company to influence consumers to purchase its products, often referred to as the 4Ps: Product, Price, Promotion, and Place.
Industry Profitability
Industry profitability is a measure of the average income and margins businesses within a specific sector can expect to earn.
Competitive Rivalry
The ongoing, competitive struggle between companies in the same industry or market to win over customers, increase market share, and achieve dominant status.
Substitute Products
Goods or services that can be used in place of each other, offering consumers an alternative choice.
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