Which of the Following Would You Not Do or Use

question 1

Multiple Choice

Which of the following would you not do or use when deciding how many factors to retain from an exploratory factor analysis?

• A) Select the number of factors with eigenvalues of 1.00 or higher.
• B) Examine a scree plot of eigenvalues plotted against the factor numbers.
• C) Disregard any high communalities.
• D) Analyse increasing numbers of factors, and stop when all non-trivial variance is accounted for.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with shareholders entitled to vote on corporate matters and receive dividends.

Net Income

The amount of total revenues that exceeds total expenses of a company during a specific time period.

Earnings Per Share

A profitability metric that measures the amount of net income earned per share of a company's outstanding stock.