Which of the Following Conditions Represents a Test That Could

question 99

Multiple Choice

Which of the following conditions represents a test that could be described as "construct valid"?

• A) A professor puts one essay question on the final exam, and that essay question is drawn from the chapter that she feels is the most important.
• B) A manager uses a work sample test used for selection that has facets that tap in to every major aspect of the job.
• C) A researcher gives a test of "job satisfaction" to a group of participants and checks to make sure that his results correlate with other measures of satisfaction.
• D) A manager assesses how effective his selection test is by checking the performance of successful candidates months after they are hired.

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Definitions:

Debt

Debt refers to the amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

ROA

Return on Assets, a financial ratio that measures the profitability of a company in relation to its total assets, indicating how efficient management is at using assets to generate earnings.

DuPont Analysis

DuPont Analysis is a financial evaluation method breaking down return on equity into three components: operating efficiency, asset use efficiency, and financial leverage, to identify what drives a company's profitability.

Earnings Yield Ratio

A metric used to evaluate the profitability of a company, calculated as earnings per share divided by the stock price.