In all of these cases, Reliability & Item Analysis may be used to construct reliable measurement scales, to improve existing scales, and to evaluate the reliability of scales already in use. For example, reliable measurement of employee performance is usually a difficult task yet, it is obviously a necessary precursor to any performance-based compensation system. The issue of precision of measurement will also come up in applied research, whenever variables are difficult to observe. In general, in all social sciences, unreliable measurements of people's beliefs or intentions will obviously hamper efforts to predict their behavior. For example, in psychology, the precise measurement of personality variables or attitudes is usually a necessary first step before any theories of personality or attitudes can be considered. In many areas of research, the precise measurement of hypothesized processes or variables (theoretical constructs) poses a challenge by itself. The term reliability used in industrial statistics denotes a function describing the probability of failure (as a function of time). This chapter discusses the concept of reliability of measurement as used in social sciences (but not in industrial statistics or biomedical research).
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