Which of the Following Is a Characteristic of Latent Variables

question 17

Multiple Choice

Which of the following is a characteristic of latent variables?

• A) The value of the latent variable is high, than the dependent variable for that observation is likely to be 0.
• B) The value of the latent variable is high, than the dependent variable for that observation is likely to be 1.
• C) It is an observed continuous variable reflecting the propensity of an individual observation of Yi to be equal to 0 or 1.
• D) They are normally distributed.

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Definitions:

Journal Entry

A record in accounting that notes a specific financial transaction in the books.

Debit Amount

A financial entry that increases an asset or expense account, or decreases a liability, equity, or revenue account.

Credit

A financial term that refers to the provision of resources (such as funds) by one party to another, where the second party does not repay the first party immediately but incurs a debt and is usually obliged to pay interest.

Accounting Cycle

The process of recording and processing all financial transactions of a company, from when the transaction occurs, to its representation on the financial statements.