Lily Is Interested in Constructing an Index to Measure Political

question 78

Multiple Choice

Lily is interested in constructing an index to measure political conservatism in Ohio.She has identified 10 different items to include in her index.Before she can claim that her index is valid,she must

• A)define her items.
• B)conduct an item analysis.
• C)externally validate her index.
• D)define her items and conduct an item analysis.
• E)conduct an item analysis and externally validate her index.

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Definitions:

Rate of Interest

The percentage of a loan amount charged for borrowing money, expressed as an annual percentage of the principal.

Cash Discount

A reduction in the price paid for goods or services if payment is made in cash or within a certain time period.

Balance Sheet Hedge

A financial strategy used to limit or offset the risk of currency exchange rate fluctuations affecting a company's balance sheet.

Exchange Rates

The value of one currency for the purpose of conversion to another.