Selecting Surrogate Variables Works Well If One Factor Loading for a Variable

question 2

True/False

Selecting surrogate variables works well if one factor loading for a variable is clearly higher than all other factor loadings.

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Definitions:

Directors

Members of a company's board who are elected by shareholders to make major decisions regarding the company, establish policies, and oversee the overall management.

Securities

Tradable financial assets such as stocks, bonds, and options, valued for investment and trading purposes.

Registrant

A business entity or individual that registers or files information with a regulatory authority.

Private Placement

The sale of securities to a relatively small number of select investors as a way of raising capital, bypassing the public markets.