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For this Knowledge Assessment, you calculate the concurrent validity coefficient between a predictor scale and criterion measure in the dataset provided. First, you will be guided through the process of how to create new variable scales. Then, you calculate the validity measure on one of the scales.
The MoneyData.sav dataset that you have been provided contains three scales that measure financial attitudes:
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- LIFESTYLE (L1 to L6) measures the desire for a luxurious lifestyle
- DEPENDENCE (D1 to D6) measures the tendency to depend on others for financial support (high scores) vs. supporting others (low scores)
- RISKTAKING (R1 to R6) measures the tendency to take financial risks in investments and careers
Create Three New Variables Showing the Scores on These Three Scales
To create the RISKTAKING scale, click TRANSFORM>COMPUTE VARIABLE. In the â€œTarget Variableâ€ field, type â€œRISKTAKING.â€ In the â€œNumeric Expressionâ€ field, type SUM(R1 TO R6).
To create the DEPENDENCE scale click TRANSFORM>COMPUTE VARIABLE. In the â€œTarget Variableâ€ field, type â€œDEPENDENCE.â€ In the â€œNumeric Expressionâ€ field, type SUM(D1 TO D6).
On the LIFESTYLE items, item L6 (â€œIâ€™d rather have a modest lifestyle because it is less stressfulâ€) is scored in the reverse direction from the other items. People endorsing this item want a less extravagant lifestyle; endorsing the other items suggests the desire for a more extravagant lifestyle. The scoring on this item needs to be reversed. To create the reversed L6 item click TRANSFORM>COMPUTE VARIABLE. In the â€œTarget Variableâ€ field, type â€œL6R.â€ In the â€œNumeric Expressionâ€ field, type â€œ6 â€“ L6.â€ By subtracting the item responses from six, they are reversed: 5 becomes 1, 4 becomes 2, etc. To create the LIFESTYLE scale, click TRANSFORM>COMPUTE VARIABLE. In the â€œTarget Variableâ€ field, type â€œLIFESTYLE.â€ In the â€œNumeric Expressionâ€ field, type SUM(L1 TO L5, L6R).
Calculate a Validity Measure for One of the Scales
There are a number of other variables in the data file, such as income, sex, age, and marital status. Create a hypothesis about an expected correlation. Here is an example: You might expect financially dependent people to have lower incomes. So, you would predict a negative correlation between DEPENDENCE and participant income (INC1). If you use SPSS to calculate the correlation between Dependence and income, (ANALYZE>CORRELATE>BIVARIATE ) you get r = – .192, p < .001. This confirms the hypothesis and gives evidence for the validity of the Dependence scale.
Think of another relationship that might support the validity of one of the scales and then test your hypothesis using the data. You will need to submit:
- Your validity hypothesis and a brief explanation about why you expect the hypothesis to be supported
- The results of your statistical test of your validity hypothesis
- Your conclusion about validity, given the results of your statistical test
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