Yvonne Yang, VP of Finance at Discrete Components, Inc

question 8

Multiple Choice

Yvonne Yang, VP of Finance at Discrete Components, Inc.(DCI) , wants a regression model which predicts the average collection period on credit sales.Her data set includes two qualitative variables: sales discount rates (0%, 2%, 4%, and 6%) , and total assets of credit customers (small, medium, and large) .The number of dummy variables needed for "sales discount rate" in Yvonne's regression model is ________.

• A)1
• B)2
• C)3
• D)4
• E)7

Realize the importance of validation techniques such as item analysis, content analysis, and expert consultation.

Understand the role of validity (convergent, discriminant, empirical) in the context of scale development and the methods for establishing it.

Recognize the necessity of cross-cultural validation processes for scales intended for use in different cultural contexts.

Grasp the fundamental aim of factor analysis in identifying underlying psychological constructs.

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Definitions:

Matures

Refers to the date on which a financial obligation must be repaid or the final payment is due, typically used in the context of bonds or loans.

Days

Units of time equivalent to 24 hours, representing one complete rotation of the Earth on its axis.

Term Deposit

A fixed-term investment held at a financial institution that pays interest at a specified rate and matures on a predetermined date.

Matures

The point in time when a financial instrument, such as a bond, CD, or loan, reaches its final due date and the principal is to be repaid.