Discussion
Consider that a newly developed test for assessing abstract reasoning and a well established test of abstract reasoning are administered to a sample of 350 and a correlation of 0.25, significant at .01 level is obtained. It will be inferred that the new test has
Answer: A
The new test has unsatisfactory concurrent validity. Concurrent validity is shown by the correlation of the new test with a well-established test of the same ability administered at about the same time, and a satisfactory value is expected to be high.
A correlation of 0.25, though significant at .01 with a sample of 350, is low in size, so the new test shares very little with the established one. Predictive validity concerns a later criterion, which is not involved here. So the first option is correct.
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