Making Predictions Solely on the Basis of Test Scores Is

question 9

Multiple Choice

Making predictions solely on the basis of test scores is called

• A) clinical prediction
• B) statistical prediction
• C) numeric prediction
• D) factor analytic prediction

---

Definitions:

Plowback Ratio

The proportion of earnings retained by a company after dividends are paid, usually to fund growth or pay down debt.

Debt-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by its shareholders' equity.

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using known variables to predict future cash flows, asset values, and withdrawal plans.

Capital Budgeting Decisions

The process by which a business evaluates and selects long-term investments that are worth more than their cost, considering their potential to generate future profits.