Suppose Someone Devises a New IQ Test and We Discover

question 160

Multiple Choice

Suppose someone devises a new IQ test and we discover that tall people get higher test scores than short people do. What, if anything, should we do to determine whether or not this test is biased against short people?

• A) Interview short people who took the test to see if they felt the test was biased against them.
• B) Statistically analyze the results to see if, in fact, the two groups did get different scores.
• C) Look at school performances to see if the test accurately predicts performances of both short and tall people.
• D) Nothing else needs to be done: The mere fact that the test reports a difference between short and tall people is evidence of test bias.

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Definitions:

Prospective Capacity

Refers to the expected or future ability of a company or economy to produce goods or services.

Common Size Balance Sheet

A financial statement that presents all items as percentages of a common base figure, such as total assets, facilitating comparison across time and companies.

Total Assets

The sum of all assets owned by an entity, encompassing both current and non-current assets, and used in determining a company's financial health.

Owners' Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing the owner's claim against the company's resources.