Which of the Following Is True About the Relationship of SEM

question 73

Multiple Choice

Which of the following is true about the relationship of SEM to multiple regression techniques?

• A) It is different from multiple regression because the all of the equation are estimated simultaneously.
• B) It is different from multiple regression because the dependent construct in one relationship may become the independent construct.
• C) SEM is similar to multiple regression when exogenous constructs are used to predict endogenous constructs.
• D) A and C are correct.
• E) A, B and C are correct.

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Definitions:

Useful Life

The period over which an asset is expected to be useful in the operations of a business.

Plant Asset's

Tangible assets that are used in the operation of a business and are not intended for resale, such as machinery, buildings, and equipment.

Useful Life

The estimated duration of time that an asset is expected to be functional and economically viable for its intended purpose.

Total Asset Turnover

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue, calculated by dividing sales revenue by total assets.