What Does It Mean to Say That a Test Is

question 197

Multiple Choice

What does it mean to say that a test is biased against members of a particular group?

• A) Members of that group get low scores on the test.
• B) The test scores underestimate the performance of that group on other tasks.
• C) The authors of the test intended it to be used unfairly against that group.
• D) Members of that group object to the test.

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Definitions:

Effective Annual Yield

The actual interest rate an investment earns in a year, taking into account the effects of compounding.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

Annual Coupon

The interest payment made to bondholders once a year, based on the bond's face value.

Yield To Maturity

The complete return expected from holding a bond until it reaches its maturity.