Which of the Following Applications Is Appropriate for Using Factor

question 35

Multiple Choice

Which of the following applications is appropriate for using factor analysis?

• A)to understand the media consumption habits of the target market
• B)to determine if variation in market share can be accounted for by the size of the sales force and advertising expenditures
• C)to identify the characteristics of price-sensitive consumers
• D)Both A and C are correct.

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Definitions:

FNMA

The Federal National Mortgage Association, known as Fannie Mae, a government-sponsored enterprise that provides liquidity to the mortgage market.

FHLMC

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a public government-sponsored enterprise (GSE) that specializes in secondary mortgage markets by purchasing mortgages and securitizing them.

Financial Asset(s)

Financial assets refer to any assets that are cash, an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument.