IQ Tests Were Originally Designed to Predict School Performance

question 15

Multiple Choice

IQ tests were originally designed to predict school performance. Recent research has shown that IQ tests

• A) do a poor job of predicting school performance.
• B) do a good job of predicting school performance but a poor job of predicting anything else.
• C) do a good job of predicting school performance and also predict other "real life" outcomes such as car accidents.
• D) have such low reliability they do not predict anything satisfactorily.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Variable Cost

Expenses that change in proportion to the production or sales figures, like labor and materials.

Operating Income

Operating income refers to an organization's earnings before interest and taxes (EBIT), derived from its primary business activities excluding any earnings from investments and other non-operational activities.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the return divided by the cost of the investment.