Selecting Surrogate Variables Works Well If One Factor Loading for a Variable

question 2

True/False

Selecting surrogate variables works well if one factor loading for a variable is clearly higher than all other factor loadings.

---

Definitions:

Revenues

The total income generated by a company from its activities, before any expenses are deducted.

Income Summary

An account in the ledger that is used to transfer the balances of revenue and expense accounts at the end of an accounting period to determine the net income or loss.

Net Income

The total earnings of a company after subtracting all costs and expenses from revenues; also known as net profit.

Revenue Accounts

Accounts that track the income a company generates from its normal business activities, typically from the sale of goods and services to customers.