Which of the Following Is True About Factor Analysis

question 66

Multiple Choice

Which of the following is true about factor analysis?

• A)it is a multivariate data analysis technique.
• B)it can be used by researchers to do cluster analysis and multidimensional scaling.
• C)it can be used by researchers to identify underlying constructs in the data.
• D)it can be used to reduce the number of variables to a more manageable set.
• E)all of these are true.

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Definitions:

Forward Exchange Rate

The predetermined rate at which two currencies will be exchanged at a future date.

International Fisher Effect

The International Fisher Effect is a theory that suggests differences in nominal interest rates in different countries are directly proportional to changes in the exchange rate between their currencies.

Spot Exchange Rate

The current exchange rate at which one currency can be immediately exchanged for another currency.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.