Factor Analysis Can Be Used in Which of the Following

question 13

Multiple Choice

Factor analysis can be used in which of the following circumstances?

• A) to identify a new, smaller set of uncorrelated variables to replace the original set of correlated variables in subsequent multivariate analysis
• B) to identify underlying dimensions, or factors, that explain the correlations among a set of variables
• C) to identify a smaller set of salient variables from a larger set for use in subsequent multivariate analysis
• D) All are correct circumstances.

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Definitions:

Common Fixed Expenses

These are fixed costs that are not directly tied to production levels, such as salaries, rent, and insurance, which are shared across different segments of a business.

Break-Even

The point at which total costs and total revenues are equal, meaning that a business or product is neither making a profit nor sustaining a loss.

Sales Dollars

The total revenue generated from the sale of goods or services by a company before any expenses are deducted.

Common Fixed Expenses

Costs that do not change with the level of output or sales, shared across different sections or products of a business.