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External Validity Refers to the Extent to Which One Can

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External validity refers to the extent to which one can infer that an independent variable has influenced the dependent variable-that is,has caused the difference in behaviors between the participants in the different experimental conditions.


Definitions:

Pro Forma Sales Forecasts

Pro forma sales forecasts are projected financial statements showing expected sales revenue, often used for planning and investment assessment.

Pro Forma Statements

Financial statements that project a company's financial performance in the future, based on certain assumptions and adding or excluding non-recurring items.

Anticipated Rate of Growth

The expected annual increase in a company's revenue or profit, often expressed as a percentage.

Financial Leverage

The use of borrowed funds with a fixed cost to finance the assets of the business to increase the potential return to shareholders.

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