A Problem with Factor Analysis Is That

question 73

Multiple Choice

A problem with factor analysis is that

• A)it leads to an unmanageable number of traits.
• B)factor loadings are like correlations.
• C)it reduces the number of traits being studied.
• D)you can only identify traits that you include in your analysis.

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Definitions:

Initial Loan

The original amount of money borrowed or the starting balance of a loan before any payments or interest are applied.

Compound Annual

Refers to the method of calculating interest where interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest.

Rate of Growth

The pace at which a quantity, such as an economic variable or a population, increases over a specific period.

Population

The total number of individuals within a specific group or area being studied or observed.