In Order to Be Useful, a Test Must Be Reliable

question 32

Multiple Choice

In order to be useful, a test must be reliable, that is, it must:

• A) produce the same results from one time to the next.
• B) measure what it is designed to measure.
• C) compare results against established standards of performance.
• D) predict other criteria of the trait in question.

---

Definitions:

Financing

The act of providing funds for business activities, making purchases or investing.

Debt

Money owed by one party to another, usually reflected as loans, bonds, or lines of credit that must be repaid with interest.

Cost Of Debt

The effective interest rate that a company pays on its total debt, serving as a measure of the expense of borrowing.

Yield To Maturity

The total return anticipated on a bond if it is held until the maturity date, considering all payments of interest and principal against the current market price.