Suppose That a Large Company Administers a New Employment Test

question 10

Multiple Choice

Suppose that a large company administers a new employment test to fifty applicants for the position of clerk-typist. All fifty are hired, and then, after nine months on the job, are rated on their job performance by their supervisors. Correlating test scores with supervisor ratings is an attempt to assess the test's

• A) test-retest reliability.
• B) internal consistency reliability.
• C) criterion-related validity.
• D) construct validity.

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Definitions:

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to reinvest in its core business or to pay debt.

Balance Sheet

A business statement that consolidates the assets, debts, and shareholder equity of a company at a certain point.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but retained by the company for reinvestment or to pay off debt.