What Is Factor Analysis

question 1

Multiple Choice

What is factor analysis

• A) a statistical procedure in which an experiment is conducted to determine the factors which contributed to the effects of the independent variable 
• B) a statistical procedure in which correlations between two variables are analyzed to identify closely related clusters of variables 
• C) a statistical procedure in which factors are analyzed for their potential impact on the independent variable before being selected for the study 
• D) a statistical procedure in which correlations among many variables are analyzed to identify closely related clusters of variables

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Definitions:

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future changes in the value of assets, securities, or commodities.

Double Coincidence Of Wants

A situation in barter economies where two parties each have what the other wants and agree to trade directly.

Barter

The exchange of goods or services between parties without the use of money as a medium of exchange.

Savings And Loan Bailout

A government intervention in the late 1980s and early 1990s, aimed at saving the Savings and Loan industry from collapsing due to bad loans and investments.