When a Group of Experts Agrees That a Measuring Instrument

question 36

Multiple Choice

When a group of experts agrees that a measuring instrument measures what it is intended to measure,we say that the instrument has ____ validity.

• A)face
• B)criterion
• C)test-retest
• D)equivalent-forms

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Definitions:

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Market Efficiency

Market efficiency refers to the extent to which market prices reflect all available, relevant information, making it impossible to consistently achieve higher returns on investment without taking additional risk.

Fair Insurance Policy

A policy that is considered equitable, offering terms and conditions that are reasonable and just for both the insurer and the insured, without exploiting any party.

Premium

An amount paid for an insurance policy, reflecting the cost of obtaining insurance coverage.