With a Reliability Coefficient of

question 27

Multiple Choice

With a reliability coefficient of .81, using classical test theory we would interpret that the:

• A)amount of error variance to observed variance is 81 percent
• B)amount of true variance to observed variance is 81 percent
• C)instrument has good enough reliability
• D)instrument's validity coefficient would be .81²

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Definitions:

Socially Efficient

A situation in which an outcome benefits society as a whole and resources are allocated in the most beneficial manner from a societal perspective.

Marginal Cost

The increase in total cost that arises from producing one extra unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition and efficiency.

Utility Functions

Represent mathematical models that quantify an individual's preference for certain bundles of goods or services under conditions of scarcity.