Scott Recently Took the Wechsler Adult Intelligence Scale Test and Achieved

question 4

Multiple Choice

Scott recently took the Wechsler Adult Intelligence Scale test and achieved a score of 115. Scott was proud of his score, until his friend Jordan tells him that intelligence tests are unreliable and have very poor validity.
-Scott and Adam get into a fight about whether or not IQ tests are reliable and valid and open up their psychology notes to settle their argument.According to your textbook,______________.

• A) IQ tests have high reliability and validity under all circumstances
• B) IQ tests are reliable, but not valid
• C) IQ tests are always reliable, but are only valid under certain specifications
• D) IQ tests are neither reliable nor valid

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Definitions:

Equity Growth

The increase in the value of an investment or portfolio, attributed to capital gains and reinvested earnings.

Firm's Equity

The value of a company's assets minus its liabilities and debt; essentially, it represents the ownership value held by shareholders in the company.

Dividend Payout

The percentage of earnings distributed to shareholders in the form of dividends.

Additional Debt Financing

Raising more funds for a company through borrowing, which may increase the company's debt-to-equity ratio.