What Is the Purpose of Determining an Instrument's Internal Consistency

question 18

Multiple Choice

What is the purpose of determining an instrument's internal consistency?

• A)It establishes face validity.
• B)It demonstrates that the instrument is measuring exactly what the researcher thinks it is measuring.c.It decreases measurement error.
• D)It is a way of establishing test-retest reliability.

---

Definitions:

DuPont Formula

A formula that breaks down Return on Equity into three parts: profitability, operating efficiency, and financial leverage, to analyze a company's financial health.

Profit Margin

A profitability ratio calculated as net income divided by revenue, showing the percentage of profit made from sales.

Income From Operations

The profit realized from a business's operational activities, calculated before taxes and interest are deducted.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses, taxes, and costs have been deducted.