Predictive Validity Is Where the Researcher Uses a Future Criterion

question 8

True/False

Predictive validity is where the researcher uses a future criterion measure, rather than a contemporary one, as in the case of concurrent validity

---

Definitions:

Budgeted Profit and Loss Statement

A financial statement forecasting the revenue, expenses, and profit for a future period, based on management's estimates.

Operating Expenses

Ongoing expenses for operating a business, excluding the cost of goods sold but including costs like rent, utilities, and payroll.

Budgetary Slack

The practice of underestimating revenues or overestimating costs when preparing a budget, to create a buffer that makes budget targets easier to achieve.

Revenue Projection

An estimate of the future sales and income generated by a company during a specific period, often used in budgeting and planning.