Test Developers May Prefer to Use a Simulation Rather Than

question 30

Multiple Choice

Test developers may prefer to use a simulation rather than a performance assessment under which of the following circumstances?

• A) when face validity is a critical issue
• B) when the behaviors measured may be dangerous to perform
• C) when the test developer needs to measure complex behaviors
• D) when the test developer expects that test bias may be a problem

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Definitions:

Paid-In Capital

The total amount of cash and other assets paid into the company by investors in exchange for shares of stock.

Retained Earnings

Retained earnings are the portion of a company's profits that is held or retained and saved for future use, investment, or to pay debt.

Solvency

The ability of a company to meet its long-term financial obligations and continue its operations in the foreseeable future.

Fair Value

The estimated market value of an asset or liability based on current conditions and acknowledged by both buyer and seller.