Predictive Validation Is a Better Measure of Validity Than Concurrent

question 2

Multiple Choice

Predictive validation is a better measure of validity than concurrent validation because:

• A)job applicants tend to be more motivated to do well on the tests.
• B)job applicants' performance on the tests is not influenced by their firsthand experience with the joB.
• C)the group studied is more likely to include people who perform poorly on the test,a necessary ingredient to accurately validate a test.
• D)All of the answers are correct.
• E)"a" and "b" only.

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its market capitalization.

Growth Rate

Growth rate signifies the percentage change of a specific variable within a specific time period, often used to indicate the expansion of a company's revenue or profit.

Risk-Free Rate

The theoretical rate of return on an investment with zero risk, often represented by the yield on government bonds.

Market Portfolio

A theoretical portfolio that includes all assets available in the market, with each asset weighted by its market capitalization.