The Purpose of Factor Analysis Can Be Best Described As

question 15

Multiple Choice

The purpose of factor analysis can be best described as:

• A)data simplification by summarizing the information contained in a large number of variables into summary measures.
• B)presenting the relationship between multiple categorical measures in a low-dimensional diagram.
• C)assessing the significance of group differences across many metric dependent variables simultaneously.
• D)assessing the degree of correlation of a group of categorical measures.

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Definitions:

Depreciation Expense

An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of an asset's value has been used.

Diminishing-Balance

A method of depreciation that accelerates the rate at which an asset loses value, applying a constant rate to the declining book value each period.

Constant Percentage

A method or rate that does not change over time, often used in calculations of growth, discount, or interest rates.

Units-of-Production Method

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it operates.