If a Test Is Standardized and Reliable, What Conclusions Can

question 27

Multiple Choice

If a test is standardized and reliable, what conclusions can you make about its validity?

• A)The test is probably valid.
• B)The test is probably invalid.
• C)The test may be valid for some people, but not for others.
• D)You cannot determine validity from reliability or standardization.

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Definitions:

Profitability Index

A financial metric that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Initial Investment

The amount of capital put into a project or business at the beginning, often used in capital budgeting to analyze potential returns.

Life Of Equipment

The estimated duration for which equipment can be expected to operate effectively and be used productively by a business.