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# Test of Validity and Reliability

A questionnaire was prepared by the researchers and the questions were
studied and categorized into cost components, revenue components, profit
maximization, and problems encountered and possible solution of the
respondents. In making the questionnaire consultation to Professor Gloria T.
Baysa, the thesis adviser was done in preparation of the questionnaire.
Survey questionnaires were checked and revised in accordance with the
comments and suggestions given by Professor Gloria T. Baysa. The
questionnaire was also showed to Ms. Rosalyn Silanga, internal auditor of
Webcast Technologies Inc., to verify its applicability and reasonableness to the
company and to provide assurance that the respondents will be able to answer it
appropriately. All corrections were incorporated to the final draft of the
questionnaire. Prior to the actual survey, a pre-survey was conducted in order to
test the validity and reliability of the questionnaire as a whole.
The researchers used item analysis for validity testing by which the
Difficulty index (DI) and the validity index (VI) of each item in test were
determined. This was used to determine if the respondents would be able to
answer the instruments Eight (8) representative’s from Webcast Technologies
Inc. who were not part of the respondents are the sample used. The responses
of these individuals were tallied to determine who answered the questions with
strongly agree strongly disagree.
To get:
VI = PSA – PSD
N
PSA =
NSA
N
PSD =
NSD
As to difficulty index, a question was not appropriate if it is easy,
appropriate if moderately difficult, and modified if difficult.
The Difficult Index formula is:

Where:
PSA = Percentage of Strongly Agree
PSD = Percentage of Strongly Disagree

The ranges of values used in determining the Difficulty Index are the
following:
DI ≥ .75 Item is Easy (E)
.25 ≤ DI ≤ .75 Item is Moderately Difficult (Mdf)
DI ≤ .25 Item is Difficult (Df)

The results of the difficulty index computation of the questionnaire show
that all were marked Moderately Difficult which shows that the questions are valid
and appropriate.
On the other hand, questions that resulted to a validity index of highly
discriminating were maintained and those that resulted to moderately
discriminating were modified.
The Validity Index formula is:

2

DI =
(PSA – PSD)
Where:
VI = Validity Index
PSA = percentage of NSA
PSD = percentage of NSA
NSA = answer with highest frequency
NSD = answer with lowest frequency
N = number of sample respondents

The ranges of values used in determining the Validity Index are the
following:
VI ≥ 0.75 Highly Discriminating (HD)
0.25 ≤ VI ≤ 0.75 Moderately Discriminating (MD)
VI ≤ 0.25 Not Discriminating (ND)

The result of the validity index computation of the questionnaire shows
Highly Discriminating which means that the questions are to be retained and
Moderately Discriminating which means that the questions are to be modified.
For reliability testing, the researchers used the split-half method. The total
set of item questions was divided into halves. The odd numbered items are
assigned as variable x, while the even-numbered are assigned as variable y. The
scores on the halves were correlated to obtain an estimate of reliability.
To obtain the value of correlation, which is the split-half reliability, the
Pearson r Product-Moment Correlation Coefficient formula was used.
The Pearson r Product-Moment Correlation Coefficient formula is:

Where:
r = Pearson correlation coefficient
x = Independent variable 9odd-numbered items
y = Dependent variables (even-numbered items)
n = Total number of respondents

The formula resulted to _____ which denoted a very high correlation.
Since the split-half procedure was based upon a correlation between
scores obtained on only half the test, a correlation was needed to determine the
reliability of the entire test. The halves can be considered approximation to
alternate forms. To do this, the Spearman – Brown Prophecy Formula was used
The Spearman-Brown Prophecy Formula is:

Where:
rwt = Reliability of the whole instrument
P = Split-half correlation

The formula resulted to _____ which denoted a very high correlation. The
computation for validity and reliability are presented in the Appendix D of the
study.

1 + P
D rwt =
2 x P