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Looking at the Communalities, Which Variable Shares the Most Variance

question 6

Multiple Choice

Looking at the communalities, which variable shares the most variance with the entire dataset?

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Definitions:

Net Income

This is the amount of profit left after all operating expenses, taxes, and interest are deducted from total revenues.

Taxes

Mandatory financial charges or levies imposed by a government on individuals or entities to fund public expenditures.

Debt Ratio

A financial ratio that compares a company's total debt to its total assets, indicating the proportion of assets financed with debt.

TIE

Times Interest Earned, a financial ratio that measures a company's ability to meet its debt obligations based on its current income.

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