Altoneicia Conducts a Validation Study and Finds R=

question 108

Multiple Choice

Altoneicia conducts a validation study and finds r=.55. She obtains a second sample and when she validates the measure this time, she finds r=.06. This notable drop between her first sample and her second sample suggests that:

• A)her measure does not apply well to different samples and probably should not be used.
• B)her measure discriminates against a protected class and probably should not be used.
• C)her measure demonstrates very little shrinkage and is ready to use to select employees.
• D)her measure demonstrates validity generalization and is ready to use to select employees.

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Definitions:

Equity Securities

Financial instruments that signify an ownership interest in a company or entity and may entitle the holder to a share of the corporation's residual cash flows or assets.

Unrealized Gains

Increases in the value of assets that have not yet been sold and therefore not converted into cash.

Fair Value

An estimate of the market value of an asset or liability, based on the current price at which it can be sold or settled.