If an Instrument Is Found to Have Content That Is

question 17

Multiple Choice

If an instrument is found to have content that is more familiar to one ethnic group as compared to another, then that instrument would have __________ bias.

• A)intercept
• B)group
• C)content
• D)criterion

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Definitions:

Straight-Line

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Discount Rate

The interest rate used to discount future cash flows to their present value.

Tax Bracket

A range of incomes taxed at a specific rate; tax brackets result in a progressive tax system, where taxation progressively increases as income grows.

Forecast Error

The difference between the expected or predicted values and what actually occurs, usually in the context of economic or financial forecasts.