Validation Is the Process of Determining How Well a Selection

question 87

True/False

Validation is the process of determining how well a selection test or procedure predicts future job performance.

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Definitions:

Convergence Play

An investment strategy that exploits the price difference between two or more markets or securities with the expectation that their prices will eventually converge.

Statistical Arbitrage

A quantitative approach to trading that uses statistical models to identify price inefficiencies among securities for profit.

S&P 500 Future

A financial contract based on the future value of the S&P 500 stock market index.

Statistical Arbitrage

A quantitative approach to equity trading involving complex statistical models to identify price inefficiencies between pairs of securities.