What Does It Mean to Say That a Particular Test

question 105

Multiple Choice

What does it mean to say that a particular test has high predictive validity?

• A) The scores enable us to predict performance on some other task.
• B) Nearly everyone who takes the test thinks it is fair.
• C) Psychologists have measured the mean and the standard deviation for a large, randomly chosen population.
• D) People who take the test repeatedly get approximately the same scores each time.

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Definitions:

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in quantity sold.

Upsloping Curve

A graphical representation showing a positive relationship between two variables, where an increase in one variable results in an increase in the other.

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Elasticity Coefficient

A numerical value that measures the responsiveness of the quantity demanded or supplied of a good to a change in its price or other factors.