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Martin Wants to Establish the Construct Validity of His New

question 121

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Martin wants to establish the construct validity of his new scale, which he believes measures problems with attention in children. The higher the score on his new scale, the more attention problems the respondent should have. Which of the following findings would help support his case?


Definitions:

Flotation Cost

Flotation cost refers to the total expenses incurred by a company in issuing new securities, including underwriting, legal, registration, and other associated fees.

Debt-Equity Ratio

An indicator of a corporation's use of debt financing, determined by dividing its overall debts by the equity of its shareholders.

External Financing

Funds a business obtains from outside the company, including loans, equity investments, and other financial instruments.

After-Tax Cost

The net cost of an expense or investment after the effects of taxes have been accounted for.

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