In a Factor Analysis, Bartlett's Test of Sphericity Tests the Null

question 28

Multiple Choice

In a factor analysis, Bartlett's test of sphericity tests the null hypothesis that:

• A) There is only one underlying factor (i.e., the set of variables is unidimensional)
• B) The minimum eigenvalue is 1.0
• C) The correlation matrix is an identity matrix with all correlations = .00
• D) Sampling adequacy has not been achieved

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Definitions:

Economic Profit

The profit a company makes after deducting both its explicit (direct) and implicit (indirect) costs.

Allocation Of Resources

The process by which resources are distributed for the production of goods and services, usually determined by market forces in a free market, or by government decisions in a planned economy.

Resource Use

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Real Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the true cost of borrowing.