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A Researcher Is Measuring the Reliability of a Substance Abuse

question 65

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A researcher is measuring the reliability of a substance abuse questionnaire that he created. In order to test the reliability of this questionnaire, he gathers a sample of individuals and randomly divides them into two groups. He administers the questionnaire to both groups and then compares the two groups' responses. If scores for both groups are similar, he can say that he has a reliable measure of substance abuse. What method is he using to measure reliability?


Definitions:

Cash Flow Hedge

A hedge of the exposure to variability in cash flows of a recognized asset or liability, or a forecasted transaction, that could affect profit or loss.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Cash Flow Hedge

A financial strategy used to manage the risk of future cash flow fluctuations due to changes in exchange rates, interest rates, or commodity prices.

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