Use the Information Below to Answer the Following Question(s) -Which of the Following Is the Average Utility for the Are

question 4

Multiple Choice

Use the information below to answer the following question(s) . Below are four options for an investment decision. $$\begin{array} { | l | l | l | l | } \hline \text { Decision/Event } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { Bank CD } & 0.80 & 0.80 & 0.80 \\\hline \text { Bond fund } & - 0.75 & 0.86 & 1.50 \\\hline \text { Index fund } & 0.00 & 0.90 & 1.20 \\\hline \text { Growth fund } & - 0.30 & 0.70 & 1.40 \\\hline\end{array}$$
-Which of the following is the average utility for the index fund decision?

• A) 1.05
• B) 0.70
• C) 0.60
• D) 0.45

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Validity

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A statistical measure used to estimate the extent to which a test represents all facets of a given construct.

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An abstract concept or theoretical entity that is used to explain and predict behavior in psychology and other social sciences.