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To Determine Whether Variances Are Significant, Managers Set Control Limits

question 29

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To determine whether variances are significant, managers set control limits, which represent the acceptable range, plus or minus an allowable deviation.


Definitions:

Reliability

Reliability refers to the consistency of a measure or instrument; a reliable instrument yields similar results under the same conditions over multiple trials.

Validity

The degree to which an assessment accurately measures its purported content.

Reliability

The degree to which an assessment tool produces stable and consistent results.

Validity

The extent to which a test measures what it claims to measure.

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