Use the following info for questions 3 and 4. on june 6th, 2014 apple inc. declared a 7-for-1 stock split for the 861.38 million outstanding shares of its $0.7 par common stock. what was an accounting effect? new shares outstanding=861.38 mln x7=6029.66 mln (about 6bln). the pie of shares was the same before and after split, but the company now has 6bln “slices” instead of 861 mln “slices”. from accounting standpoint, there was no need to do adjustment to common stock or paid-in capital. thus, total equity after the split stayed the same par value after the split 0.1calculated as follow: 0.7/7=0.1. reason for split: apple stated that it executed this 7-for-1 stock split because it wanted to make its shares available to more investors. due to the split, the market price per share went from about $650 per share down to about $94 per share, making the stock affordable for more people. suppose, that your dearest grandma knowing your passion for technology instead of buying you another “toy” (new ipad) bought you one apple share as a christmas present in 2013. on june 6th, 2014, you received a message from apple, notifying you that you just became owner of shares.

Reliability and validity reliability and validity are two important considerations that must be made with any type of data collection. reliability refers to the ability to consistently produce a given result. in the context of psychological research, this would mean that any instruments or tools used to collect data do so in consistent, reproducible ways. unfortunately, being consistent in measurement does not necessarily mean that you have measured something correctly. to illustrate this concept, consider a kitchen scale that would be used to measure the weight of cereal that you eat in the morning. if the scale is not properly calibrated, it may consistently under- or overestimate the amount of cereal that’s being measured. while the scale is highly reliable in producing consistent results (e.g., the same amount of cereal poured onto the scale produces the same reading each time), those results are incorrect. this is where validity comes into play. validity refers to the extent to which a given instrument or tool accurately measures what it’s supposed to measure. while any valid measure is by necessity reliable, the reverse is not necessarily true. researchers strive to use instruments that are both highly reliable and valid.