Why Are Convergent and Discriminant Validity Often Evaluated Together

question 35

Multiple Choice

Why are convergent and discriminant validity often evaluated together?

• A) Because both terms mean the same thing
• B) Because both involve collecting information from a lot of psychological measures of theoretical interest
• C) Because both must be established before examining predictive and concurrent validity
• D) Because both require the use of scatterplots
• E) Because both have to be determined by a panel of experts

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Definitions:

Net Present Value (NPV)

The calculation used to find today's value of a future stream of payments and receipts, factoring in the time value of money.

Option to Abandon

A strategic decision-making right allowing a company to cease investment in a project if operational costs outweigh the benefits.

Forecasting Error

The difference between the actual value and the predicted value in forecasting, indicating the accuracy of the prediction.

Capital Expenditure

Resources allocated by a corporation to purchase or improve tangible assets like land, factories, or machinery.