External Validation Is to Internal Validation as Prediction Is to

question 41

Multiple Choice

External validation is to internal validation as prediction is to

• A)validity.
• B)reliability.
• C)the connection between the composite index and individual items.
• D)the best strategy for handling missing data.
• E)evaluation

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Definitions:

Expiration Date

The date on which a contractual agreement, option, or financial instrument becomes invalid or requires renewal.

Exercise Price

The predetermined price at which an option contract can be executed.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a fixed time period.

Market Value

The existing buying or selling price of a service or asset in a trading environment.