Jerome Wants to Determine Whether a Test Can Identify Employees

question 52

Multiple Choice

Jerome wants to determine whether a test can identify employees who will be top performers. He administers his test to his employees, and he finds that its results correlate with their current performance. He has demonstrated:

• A)content validity.
• B)predictive validity.
• C)concurrent validity.
• D)divergent validity.

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Definitions:

Mutually Exclusive

Describes options or decisions that cannot be adopted or pursued at the same time.

Management Accept

The process of corporate leadership approving strategies, initiatives, or decisions based on their alignment with the organization's objectives and resource capabilities.

Required Rate of Return

The lowest yearly return rate on an investment that appeals enough to persuade people or corporations to invest in a specific venture or financial opportunity.

NPV

Net Present Value (NPV) is the calculation used to determine the current value of a series of future cash flows, discounted at the hurdle rate.