The Higher the ________, the More Accurate the Test Is

question 38

Multiple Choice

The higher the ________, the more accurate the test is in predicting the criterion.

• A) validity coefficient
• B) reliability coefficient
• C) validity curve
• D) reliability curve

---

Definitions:

NPV

Net Present Value; a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

WACC (Weighted Average Cost of Capital)

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including equity and debt.

IRR (Internal Rate of Return)

The rate of return that brings the total net present value of all cash flows from a given project to zero.

Independent Project

A project whose cash flows are not influenced by the acceptance or non-acceptance of other projects, allowing it to be evaluated on its own merits.