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To Test the Validity of the Selection Test for Advanced

question 53

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To test the validity of the selection test for advanced widget designers,Correll-Techno Inc.administers the test to the present widget makers in the company.The test results are then compared with the employees' latest performance appraisal scores.In this instance,what type of validation does Correll-Techno implement?


Definitions:

Liabilities

Financial obligations or debts owed by a business to external parties or individuals, which must be settled over time through the transfer of economic benefits.

Equity

The ownership interest in a company of its shareholders; it represents the amount of assets that would be returned to shareholders if all the company's debts were paid off.

Debt Ratio

A financial ratio that compares the amount of a company’s total debt to its total assets, indicating the leverage level.

Assets

Resources owned by a company or individual considered valuable and can be used to produce positive economic value.

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