An Estimate of Reliability Based on the Average Correlation Among

question 9

Multiple Choice

An estimate of reliability based on the average correlation among items within a test is called:

• A) internal consistency reliability.
• B) alternate forms reliability.
• C) test-retest reliability.
• D) split-half reliability.

Calculate and interpret the contribution margin ratio and its significance for business operations.

Analyze the impact of changes in sales volume, pricing, and cost structures on a company's net operating income.

Assess the degree of operating leverage and understand its implications for business risk and profitability.

Apply the margin of safety concept to evaluate business risk.

---

Definitions:

Operate

The act of functioning or running a business or machine, carrying out actions necessary for performance.

Average Variable Cost

the total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Short Run

The short run is a period in which at least one factor of production is fixed, limiting the ability of a business to expand or reduce its output.

Shut Down

A temporary choice made by a company to halt manufacturing because of unsuitable market circumstances.