A Clear Case of Test Bias Is When Regression Lines

question 58

Multiple Choice

A clear case of test bias is when regression lines describing the relationship between test and criterion for two different groups

• A)are parallel, but have different intercepts.
• B)have the same slope and the same intercept.
• C)have different slopes.
• D)are based on two different means for the test.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in capital budgeting and investment valuation.

Earnings Before Interest And Taxes (EBIT)

A measure of a firm's profit that includes all incomes and expenses except interest and income tax expenses.

Sales Volume

refers to the number of units sold within a reporting period, used as a measure of business performance and market demand.

Variable Costs

Expenses that change in proportion to the production output or sales of a company, such as raw materials and direct labor costs.