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:

Commission Charges

Fees charged by brokers or agents for their services in facilitating transactions, often calculated as a percentage of the transaction value.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits.

Rate of Yield

The return on an investment over a period of time, expressed as a percentage of the original investment.

Commission Charges

Fees paid to an agent or company for facilitating a transaction, typically a percentage of the sale amount.