If a Questionnaire Test of Sociability Correlates with the Number

question 5

Multiple Choice

If a questionnaire test of sociability correlates with the number of conversations people have, the sociability test has high

• A)face validity.
• B)discriminant validity.
• C)predictive validity.
• D)generalizability.

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Definitions:

Perpetuity

A type of annuity that continues indefinitely, often used in finance to model consistent payments or cash flows without an end date.

Compounding Period

The frequency with which interest is added to the principal balance of an investment, which can be annually, semiannually, quarterly, etc.

Annual Percentage Rate

A measure of the cost of borrowing expressed as a yearly interest rate that includes fees and costs associated with the loan.

Effective Annual Rate

The real return on an investment, taking into account the effect of compounding interest as opposed to just the nominal rate.