A Problem in Developing a Scale Is in Weighting the Variables

question 51

Multiple Choice

A problem in developing a scale is in weighting the variables being combined in the scale._______________ can do this by using the _______________ as the weights.

• A) factor analysis, factor loadings
• B) cluster analysis, centroid distances
• C) multiple regression, coefficients of the regression
• D) discriminant analysis, coefficients of the DF

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Definitions:

Resource Prices

The cost of inputs used in the production of goods and services, such as labor, raw materials, and capital.

Market System

An economic system relying on market forces to allocate resources and to determine and regulate prices for goods and services.

What Will Be Produced

A fundamental economic question that addresses the kinds of goods and services to be made available in an economy, determined by factors such as resources, technology, and consumer preferences.

Consumer Sovereignty

The idea that what consumers want influences the goods and services produced in an economy.