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.

---

Definitions:

Compounded Monthly

The calculation method where interest is added to an investment's principal every month, with each subsequent month's interest calculation based on the new total.

Total Interest Costs

The total amount of interest that will be paid over the lifetime of a loan, mortgage, or other debt.

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment or loan twice a year, leading to interest on interest.

Compounded Quarterly

The process where interest is added to the principal sum of a deposit or loan every three months, leading to interest earnings on interest.