Suppose a Factor Analysis Results in 8 Factors and That

question 35

Multiple Choice

Suppose a factor analysis results in 8 factors and that the communality for variable 12 is 0.863.The 0.863

• A) means about 86.3 percent of the variance of variable 12 is explained by the eight factors
• B) means that 86.3 percent of the variance of variable 12 is explained by the factor on which it loads
• C) is the factor loading for variable 12
• D) explains how much of the variable is error

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Definitions:

Nominal GDP

Gross Domestic Product measured in current prices without adjusting for inflation, representing the total value of all goods and services produced over a specific time period within a country's borders.

Real GDP

The calculation of a nation's total economic production factoring in adjustments for price fluctuations, either inflationary or deflationary.

Growth Rate

The measure of the increase in a particular variable, such as GDP or population size, over a specific period of time, usually expressed as a percentage.

Nominal GDP

The gross domestic product measured in current market prices, without adjustment for inflation.