Predictive validation is better than concurrent validation because:
A) job applicants tend to be more motivated to do well on the tests.
B) job applicants' performance on the tests are not influenced by their firsthand experience with the job.
C) the group is more likely to include people who perform poorly on the test, a necessary ingredient to accurately validating a test.
D) All of the above
Answer: D) All of the above
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Indicate whether this statement is true or false.
The zero curve is upward sloping. Define X as the 1-year par yield, Y as the 1-year zero rate and Z as the forward rate for the period between 1 and 1.5 year. Which of the following is true?
A. X is less than Y which is less than Z B. Y is less than X which is less than Z C. X is less than Z which is less than Y D. Z is less than Y which is less than X