Which of the Following Is a Weakness of the Factorial

question 5

Multiple Choice

Which of the following is a weakness of the factorial design?

• A) The study results become increasingly complex with the addition of more variables to the design.
• B) The interaction of the independent variables with each other cannot be tested by this design.
• C) Unexplained variance in the dependent variable is increased with the addition of related independent variables.
• D) A maximum of five independent variables and their effects can be studied using this design.

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Definitions:

Fair Value Hedge

A hedge that protects against changes in the fair value of an asset, liability, or an unrecognized firm commitment that is attributable to a particular risk.