Which of the Following Represents the Most Direct Evidence That

question 100

Multiple Choice

Which of the following represents the most direct evidence that a test is a valid measure of a construct?

• A) The test predicts success in college.
• B) The test scores correlate highly with teachers' ratings.
• C) The test includes a representative sample of the skills taught in the course.
• D) The test of trait Y places individuals into categories that were predicted from the theory of trait Y.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of a business.

Benjamin Graham

Widely recognized as the father of value investing, he was an economist, professional investor, and Columbia Business School professor.

Investment Funds

Pooled funds from investors that are managed on their behalf by an investment manager, investing in a variety of assets to meet specific investment goals.

Income Statement

A financial statement showing a firm’s revenues and expenses during a specified period.