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**Prediction** If two variables are known to be related in some systematic way, it is possible to use one of the variables to make accurate predictions about the other.
Validity Suppose a psychologist develops a new test for measuring intelligence. To show that this test truly measures what it claims, the psychologist could demonstrate the validity of the test. One common technique for demonstrating validity is to use a correlation.
Reliability In addition to evaluating the validity of a measurement procedure, correlations are used to determine reliability. A measurement procedure is considered reliable to the extent that it produces stable, consistent measurements.
Theory Verification Many psychological theories make specific predictions about the relationship between two variables. For example, a theory may predict a relationship between brain size and learning ability; a developmental theory may predict a relationship between the parents’ IQs and the child’s IQ; a social psychologist may have a theory predicting a relationship between personality type and behavior in a social situation. In each case, the prediction of the theory could be tested by determining the correlation between the two variables.