Macmillan Has Designed a Test to Measure Mathematical Ability in College

question 55

Multiple Choice

Macmillan has designed a test to measure mathematical ability in college graduates. In order to establish a norm against which individual scores may be interpreted and compared, she is presently administering the test to a large representative sample of college graduates. Dr. Macmillan is in the process of:

• A)evaluating the test's validity.
• B)establishing the test's reliability.
• C)standardizing the test.
• D)establishing the test's representativeness.

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Definitions:

Cash Dividend

A distribution of a company's profits to its shareholders in the form of cash.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.

Common Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell shares of a company's common stock at a set price before the option expires.