In Exploratory Factor Analysis, the Goal Is To

question 1

Multiple Choice

In exploratory factor analysis, the goal is to:

• A) Describe data by grouping together variables that are correlated.
• B) Summarize data by grouping together variables that are uncorrelated.
• C) Describe and summarize data by grouping together variables that are correlated.
• D) Test a theory about latent processes that might occur among variables.

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Definitions:

Income Statement Accounts

Accounts that reflect income, expenses, gains, and losses, which are used to determine the net income of a business.

Deferred Revenue

Income received by a company for products or services yet to be delivered or completed, considered a liability until the revenue is earned.

Unearned Rent

Income received by a property owner for which the services (use of property) have not yet been provided.

Expense Accounts

Accounts used to track money spent or costs incurred in a business's operational activities.