At What Point Would We Assume That the Construct Validity

question 55

Multiple Choice

At what point would we assume that the construct validity of a test has been established and no more studies should be done?

• A)when we have shown that it correlates with several other measures designed to tap the same construct
• B)when we have shown that it does not correlate with measures designed to tap different constructs
• C)never - construct validation is an ongoing process
• D)when the validity coefficients are above .8

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Definitions:

Income Taxes

Taxes levied by the government on earnings generated by businesses and individuals within their jurisdiction.

Capital Budgeting Decisions

The process of evaluating and selecting long-term investments that are in line with the firm's goal of maximizing shareholder value.

Future Outcomes

Possible events or results that have not yet occurred and may be influenced by current actions or decisions.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows.