If an Item-Discrimination Index Is Negative

question 92

Multiple Choice

If an item-discrimination index is negative

• A) high scorers are more likely to have answered the item correctly than low scorers.
• B) low scorers are more likely to have answered the item correctly than high scorers.
• C) the alternate form of the test is probably not equivalent.
• D) the computer scoring is in error because this index is not supposed to be negative.

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Definitions:

Alpha/Beta

Measures in finance; Alpha represents the strategy's returns above the benchmark, whereas Beta indicates the volatility relative to the market.

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.

Forecasting Ability

The capability to predict future trends, prices, or outcomes based on historical data, trends, and analysis.

Tracking Error

The difference between the return on a managed portfolio and that of a benchmark portfolio against which the manager is evaluated.