Sebastian Is Concerned About His Most Recent Hires at Anderson

question 100

Multiple Choice

Sebastian is concerned about his most recent hires at Anderson Brothers Company.He believed that by basing his selection on job-knowledge tests administered during the interview,he would have few problems with inept hires and would find the best employee for each position.He has found though,that the eight employees who were hired during the last hiring period each have had complaints about lack of competence and job knowledge.This most likely indicates that the tests lack:

• A) reliability.
• B) internal validity.
• C) external validity.
• D) predictive validity.

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Definitions:

After-Tax Dollar Value

The net value of an investment, income, or transaction after accounting for the effects of income taxes.

Realized Profits

The gains earned and received from the sale of assets or investments.

Tax Rate

The rate at which a person or company is taxed by the state.

Unrealized

Referring to profits or losses that have occurred on paper due to changes in the value of assets or investments but have not been actualized through a sale or transaction.