Some Companies Subject Their Applicants to Extensive Tests.Why

question 82

Multiple Choice

Some companies subject their applicants to extensive tests.Why?

• A) to reduce the informational asymmetry between the firm and the applicant
• B) to screen the applicant to avoid the problem of adverse selection
• C) to gather more information about the applicant
• D) All of the above.

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Definitions:

Validity

The extent to which a test accurately measures what it is intended to measure.

Correlation

A statistical measure that describes the extent to which two variables change together, but does not necessarily imply causation.

Discriminant Validity

The extent to which a test or experiment measures different constructs, demonstrating that the scales do not correlate too highly with measures from which they should differ.

Content Validity

The extent to which a test or tool accurately measures the entire scope of the concept it intends to measure.