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The concept of incremental validity refers to the extent to which a new predictor improves the accuracy of decision-making beyond what is already provided by existing predictors. The criterion-related validity coefficient is central to understanding incremental validity because it quantifies how well a predictor correlates with an outcome of interest. A higher criterion-related validity coefficient indicates that the predictor provides significant information about future performance, suggesting that it contributes valuable, additional evidence in predicting outcomes. This makes it a crucial factor in assessing whether an added predictor justifies its use over existing ones.

In this context, other factors like selection ratio, base rate, and generalizability play important roles in broader assessment practices but do not directly capture the primary aspect of how much additional predictive power a new measure brings to the table. Selection ratio relates to how many individuals are selected for a criterion assessment; base rate refers to the prevalence of a phenomenon within a population, and generalizability pertains to the consistency of findings across different settings or groups. None of these elements specifically highlight the enhancement of predictions brought about by a new predictor, which is why the criterion-related validity coefficient is deemed paramount in determining incremental validity.