Factor Analysis Can Help Determine Coefficients in Multiple Regression,because

question 44

Multiple Choice

Factor analysis can help determine coefficients in multiple regression,because

• A) principle components make useful variables
• B) factor loadings make useful coefficients
• C) coefficients measure the effect of unit changes in a variable assuming all other variables remain constant
• D) all of the above

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The increase in total cost that arises from producing one additional unit of a good or service.

Output

The amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Costs

Costs that vary directly with the level of output, such as raw materials and direct labor expenses.