The Textbook Indicates That Validity Is the Second Criterion Used

question 39

Multiple Choice

The textbook indicates that validity is the second criterion used to determine the usefulness of a diagnostic system. This is because

• A) as long as a diagnostic system is reliable, it does not matter if it is valid.
• B) if you don't have reliability, you cannot have validity.
• C) reliability and validity are independent of one another.
• D) a diagnostic tool that is reliable is also likely to have at least moderate validity.
• E) validity is usually more important than reliability.

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Definitions:

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods in a manufacturing facility.

Salvage Value

Salvage Value is the estimated residual value of an asset at the end of its useful life, expected to be recovered once the asset is no longer useful in operations.

Straight-Line Method

A method of allocating the cost of an asset evenly across its useful life for accounting and depreciation purposes.

Completed-Contract Method

An accounting method where revenue and expenses are recorded only when a contract is completed, used primarily for long-term projects.