If a Test Measures a Single Construct Then

question 1

Multiple Choice

If a test measures a single construct then:

• A) The items should correlate with the total score.
• B) The items should not correlate with the total score.
• C) The test should not correlate with other measures of the same construct.
• D) There must be a reliable alternative form.

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Definitions:

Expansion Projects

Initiatives undertaken by a firm to increase its capacity or operations, often requiring significant capital investment.

Replacement Projects

Investments undertaken to replace old or obsolete assets with new ones, aiming to maintain or enhance efficiency, productivity, or the competitive position of a business.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not factor into the decision-making process for future investments.

Internal Rate of Return (IRR)

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.