What Is the Most Common Measure of Scale Reliability

question 16

Multiple Choice

What is the most common measure of scale reliability?

• A) Cronbach's alpha
• B) Pearson correlation
• C) Spearman's beta
• D) Kendall's sigma

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on the income or profit earned.

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes a company's cost of capital and maximizes its stock price.

Tax Saving

Strategies or investments that reduce the amount of tax owed by taking advantage of allowable deductions, credits, or exemptions.

Optimal Capital Structure

The best combination of debt and equity financing that maximizes a company's value while minimizing its cost of capital.