The University Uses an Algebra Test to Screen Students into Statistics

question 101

Multiple Choice

The University uses an algebra test to screen students into statistics courses. Students' responses are scored as correct or incorrect and are summed for a total score. The test is really long and seems to cover a lot of content. So Carlos divides the test in two and assesses the reliability of the entire test and the reliability of the two halves. Carlos is assessing the ________________ of the test.

• A) content validity
• B) internal consistency reliability.
• C) test-retest reliability
• D) criterion-related validity

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Definitions:

Dividend Payout Policy

The policy a company follows in deciding how much it will pay out to shareholders in dividends.

Put

A financial option contract giving the owner the right but not the obligation to sell a specified amount of an underlying asset at a set price within a specified time.

Call

An options contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified time.

Black-Scholes OPM

The Black-Scholes Option Pricing Model, a foundational model for pricing European options, calculating the theoretical price of options by estimating future volatility.