Relative Performance Evaluation ________

question 24

Multiple Choice

Relative performance evaluation ________.

• A) determines the effective intensity of incentives placed on each measure of performance
• B) filters out the effect of common uncontrollable factors
• C) results in managers helping each other who run similar operations
• D) leads to goal congruence

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Definitions:

Indicator Variables

Variables, often used in statistical models, that take on a value of 0 or 1 to indicate the absence or presence of a categorical effect that may impact the result.

Validity

The degree to which an indicator accurately measures or reflects a concept.

Reliability

The likelihood that a particular measure would produce the same results if the measure were repeated.

Indicator Variable

A variable in statistical modeling that assigns a value of 0 or 1 to indicate the non-presence or presence of a specific condition or attribute.