A Test with Differential Validity Is

question 8

Multiple Choice

A test with differential validity is:

• A) not valid for anyone
• B) measuring more constructs than it should
• C) potentially valid for one group but not for another
• D) not legally allowed to be used for selection
• E) equally predicting job performance for multiple subgroups

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Definitions:

Moody's "Aaa"

The highest credit rating given by Moody's Investors Service, denoting the lowest risk of default for bonds and other fixed-income securities.

Default Rate

The percentage of borrowers who fail to remain current on their loans or credit agreements, indicating the level of credit risk associated with a loan portfolio.

Operating Activities

Business activities directly related to the production and delivery of goods and services, forming the primary revenue-producing activities of an entity.

Operating Cash Shortfalls

Situations where a business does not generate enough cash from its operating activities to meet its operational expenses.