If a Test Measures What It Is Supposed to Be

question 41

Multiple Choice

If a test measures what it is supposed to be measuring,then we can say that the test is:

• A) reliable
• B) consistent
• C) valid
• D) conceptualized

---

Definitions:

Simple Rate Of Return

The rate of return computed by dividing a project’s annual incremental accounting net operating income by the initial investment required.

Technologically Obsolete

A state where a product or equipment becomes outdated or no longer competitive due to advances in technology.

Discount Rate

This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.

Salvage Value

The expected sale price of an asset at the end of its effective life.