Under Which One of the Following Situations Would You Be

question 307

Multiple Choice

Under which one of the following situations would you be better off?

• A) You have $10,000 in your savings account paying 5 percent per year and unanticipated inflation is 8 percent per year.
• B) You have paid $500 for a $1,000 U.S. savings bond that matures in 10 years and unanticipated inflation is 10 percent per year.
• C) You lend a friend $10,000 at 2 percent to be repaid in one year and unanticipated inflation is 4 percent during the year.
• D) You borrowed $10,00 at 2 percent to pay for this year's college expenses and unanticipated inflation is 3 percent during the year.

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Definitions:

Exercise

Exercise is physical activity that is planned, structured, and repetitive for the purpose of conditioning any part of the body, improving health, and maintaining fitness.

Concurrent Validity

Evidence that test scores are related to an external source that can be measured at around the same time the test is being given (“here and now” validity). This is a type of criterion-related validity.

Predictive Validity

The extent to which a test score or instrument can predict the performance or outcomes on relevant future measures.

Criterion-related Validity

A measure of how well one variable or test predicts an outcome based on information from other variables.