What is test validity? How are selection tests validated?
What will be an ideal response?
Answer: Test validity answers the question "Does this test measure what it's supposed to measure?" Put another way, validity refers to the correctness of the inferences that we can make based on the test. With employee selection tests, validity often refers to evidence that the test is job related—in other words, that performance on the test is a valid predictor of job performance. Selection tests are validated by a five step process: analyze the job, choose the tests, administer the test, relate test scores to criteria, and revalidate the test.
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Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced
Breezy submits a bid of $40 per unit with a defect rate of 3%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%. If a section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the capybaras. Dusty believes it will take 500 units to fence in this pasture configuration; which supplier should win the business? A) Spike B) Breezy C) Lady D) no difference between Breezy and Spike
Since yield curves are usually upward sloping, the ________ indicates that, on average, people tend to prefer holding short-term bonds to long-term bonds
A) market segmentation theory B) expectations theory C) liquidity premium theory D) both A and B of the above E) both A and C of the above