A Franchisor That Makes Sales or Earnings Projections Based on Hypothetical

question 11

True/False

A franchisor that makes sales or earnings projections based on hypothetical examples need not disclose the assumptions underlying the estimates.

---

Definitions:

Discriminant Validity

The extent to which a test or experiment measures different constructs, demonstrating that the scales do not correlate too highly with measures from which they should differ.

Content Validity

The extent to which a test or tool accurately measures the entire scope of the concept it intends to measure.

Construct Validity

The extent to which a test or instrument accurately measures the theoretical construct or concept it is intended to measure.

Split-half Reliability

A measure of consistency where a test is divided into two parts and the scores for each half are compared to assess the test's reliability.