Contrast Errors Are Most Likely When Raters Are Required to Rank

question 30

True/False

Contrast errors are most likely when raters are required to rank employees in order from the best to the poorest.

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Definitions:

Index

A statistical measure of change in a representative group of individual data points, often used in finance to track the performance of markets or sectors.

Stock Split

A corporate action where a company divides its existing shares into multiple shares, effectively reducing the price of an individual share for investors while keeping the overall market capitalization the same.

Value-Weighted Index

An stock index in which each component is weighted according to its market value.

Price-Weighted Index

A stock market index in which each company's stock is included in proportion to its share price, meaning higher-priced stocks have more influence on the index's performance.