Which Statement Is Not Correct Concerning Factor Scores

question 33

Multiple Choice

Which statement is not correct concerning factor scores?

• A)In principal components analysis it is possible to compute exact factor scores that are uncorrelated.
• B)In common factor analysis,estimates of factor scores are obtained,and there is no guarantee that factors will be uncorrelated with each other.
• C)Factor scores can be used instead of the original variables in subsequent multivariate analysis.
• D)All statements are correct.

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Definitions:

Decision Makers

Individuals or groups responsible for making choices that can have wide-ranging impacts on an organization or portion of it.

Relevance

The importance of information in making financial decisions, ensuring that financial data is significant and pertinent.

Indirect Method

A method for preparing the cash flow statement where net income is adjusted for changes in balance sheet accounts to reconcile to cash provided by operating activities.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.