All Things Considered, What Is the Most Important Characteristic of a Test

question 25

Multiple Choice

All things considered, what is the most important characteristic of a test?

• A) Its objectivity
• B) Its relevance
• C) Its reliability
• D) Its validity
• E) Its variance

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Definitions:

Taxes

Taxes are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.