If You Want to Know That a Test Measures Some

question 3

Multiple Choice

If you want to know that a test measures some underlying psychological construct, what type of validity evidence would you want to collect?

• A) Content validity
• B) Construct validity
• C) Predictive validity
• D) Criterion validity

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Definitions:

Short-Form Prospectus Distribution

A regulatory process that allows for the quicker and less burdensome distribution of securities, relying on a simplified prospectus for investors.

New Stock

Shares that are issued to the public for the first time through an initial public offering (IPO) or additional shares issued by a company already public.

Leveraged Buyout

The acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition.

Tax Shields

Financial techniques that reduce taxable income through deductions such as mortgage interest, depreciation, or charitable donations, effectively lowering tax liabilities.