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

Comprehend how exchange rates are determined and their reciprocal nature.

Grasp the concept of trade balances and how they relate to net capital outflow/inflow.

Recognize how changes in a country's trade surplus affect its net capital outflow.

Understand the possibility and implications of a country having domestic investment exceed national saving.

---

Definitions:

Net Loss

The amount by which total expenses exceed total revenues for a business over a specific period.

Withdrawal

The act of removing funds from an account, or the act of taking out resources or assets from a business by an owner for personal use.

Capital

The wealth, either financial or physical, that is used by a business to produce goods or services.

Income Summary

An account in which the revenues and expenses are temporarily recorded to calculate the net income or loss for a period, before transferring to the capital account.