Which Statement Is Not True of Exploratory Factor Analysis (EFA)

question 13

Multiple Choice

Which statement is not true of exploratory factor analysis (EFA) ?

• A) EFA identifies the factor structure or model for a set of variables.
• B) EFA establishes the number of principal underlying factors in the data.
• C) EFA identifies the pattern seen in the correlations of each variable to the factors.
• D) EFA confirms the number of constructs identified in previous research.

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Definitions:

Initial Public Offering

The first sale of a company's shares to the public, leading to a public listing on a stock exchange.

Internet

A vast network of computers globally connected that facilitates data exchange and communication.

Insider Trading

The unlawful act of buying and selling stocks for personal gain using privileged information that is not publicly available.

Dividend

A distribution of corporate profits to the corporation’s shareholders in proportion to the number of shares held.