If the Variables Are Standardized,the Factor Model May Be Presented

question 6

Multiple Choice

If the variables are standardized,the factor model may be presented as ________.

• A)X_i = A_i1 F₁ + A_i2 F₂ + A_i3 F₃ + ...+ A_im F_m + V_iU_i
• B)X_i = W_i1 F₁ + W_i2 F₂ + W_i3 F₃ + ...+ W_im F_m + V_iU_i
• C)F_i = W_i1 X₁ + W_i2 X₂ + W_i3 X₃ + ...+ W_im X_m + V_iU_i
• D)X_i = A_i1 F₁ + A_i2 F₂ + A_i3 F_{3 + ...+} A_im F_m

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