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Factor Analysis Identifies Clusters of Highly Correlated Variables Within a Larger

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Factor analysis identifies clusters of highly correlated variables within a larger set of variables.


Definitions:

Production Material Needs

The quantity and type of materials required to meet production goals.

Budgeted Purchases

The anticipated expenditures on goods and materials a company plans to buy for a specific period.

Finished Goods Inventory

The completed products that are ready for sale but have not been sold yet.

Yarn

A long continuous length of interlocked fibers used in the production of textiles, knitting, crocheting, sewing, and weaving.

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