The process of determining statistically whether criterion-related validity obtained in one sample holds up in another sample is:
A) selection validity.
B) cross validation.
C) predictive ability analysis.
D) validity generalization.
Answer: D) validity generalization.
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Soft capital rationing is imposed upon a firm from ________ sources, while hard capital rationing is imposed from ________ sources.
A) Internal; internal B) External; internal C) Internal; external D) External; external
If the cost of materials increases, which of the following should the business consider as a result?
a. Meet with competitors and encourage them to raise prices to reflect the increased cost of materials. b. Immediately raise the price of the product to reflect increased costs. c. Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials. d. Determine what the competitor is doing and adjust your price accordingly.