Rotation Causes Variables to Load Higher on One Factor, and Less

question 23

True/False

Rotation causes variables to load higher on one factor, and less on others, bringing the pattern of groups better into focus for interpretation.

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Definitions:

Inventory Period

The average time it takes for a company to turn its inventory into sales, indicating the efficiency of inventory management.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Short-term Finance

Financing options intended for a period typically less than one year, used to address immediate operational needs.