Dr Li Is Interested in Creating a Measurement of Religiosity

question 49

Essay

Dr. Li is interested in creating a measurement of religiosity. According to the dictionary, religiosity is "the quality of being religious; piety; devoutness." He creates a measure comprising 10 statements. People respond to each statement using the following scale (1 = strongly disagree, 3 = neither agree nor disagree, 5 = strongly agree). Some of the statements are below.
Statement 1: "I believe in a religion."
Statement 2: "Part of who I am stems from my religious beliefs."
Statement 3: "I believe that religion is unnecessary."
Provide a suggestion for how Dr. Li could establish the criterion validity of his measure.

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Definitions:

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns.

Time Periods

Distinct intervals of time used for financial reporting, planning, and forecasting, which can range from short-term to long-term durations.

Present Value

Refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

An investment vehicle that offers a steady flow of income to an individual, commonly utilized in retirement planning strategies.