Owen Wanted to Assess the Internal Consistency of His Measure

question 39

Multiple Choice

Owen wanted to assess the internal consistency of his measure of anxiety so he measured reliability estimates by comparing items within his test. He reported a reliability estimate of .80. What measure of reliability is Owen using?

• A) Cronbach's alpha
• B) path analysis
• C) factor analysis
• D) Riesen's reliability estimate

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Definitions:

Minimum Variance

Minimum Variance is a portfolio strategy or model that seeks to construct a portfolio with the lowest possible volatility or risk for a given level of expected return.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification in an investment portfolio.

Residual Standard Deviation

A measure of the amount by which an entity's observed values differ from the predicted values, indicating the precision of estimates in regression models.

Index Model

A financial model that describes the return of a security or portfolio as a function of the return of the market index, plus a residual effect unique to the security.