In Factor Analysis,what Does the Researcher Seek During Data Reduction

question 32

Multiple Choice

In factor analysis,what does the researcher seek during data reduction?

• A)statistical significance
• B)latency
• C)parsimony
• D)construct validity

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Definitions:

Discount Rate

A rate used to determine the present value of future cash flows; it's often used in discounted cash flow analysis to account for the time value of money.

Net Present Value

The variance between cash inflows and outflows' present value over time, utilized to evaluate an investment's profitability.

Working Capital

The gap between a firm's present assets and liabilities, showing how liquid it is in the short run.

Investment Project

An investment project represents a series of cash inflows and outflows aimed at generating a return over time, typically involving the purchase of assets or investment in ventures.