If the Variables Are Standardized,the Factor Model May Be Presented

question 6

Multiple Choice

If the variables are standardized,the factor model may be presented as ________.

• A)X_i = A_i1 F₁ + A_i2 F₂ + A_i3 F₃ + ...+ A_im F_m + V_iU_i
• B)X_i = W_i1 F₁ + W_i2 F₂ + W_i3 F₃ + ...+ W_im F_m + V_iU_i
• C)F_i = W_i1 X₁ + W_i2 X₂ + W_i3 X₃ + ...+ W_im X_m + V_iU_i
• D)X_i = A_i1 F₁ + A_i2 F₂ + A_i3 F_{3 + ...+} A_im F_m

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Definitions:

Food and Supplies

The consumable items and materials necessary for the operation of businesses involved in food service, hospitality, or healthcare, among others.

Spending Variance

The difference between the actual cost incurred for something and the expected cost according to a budget.

Tenant-Days

A metric used in real estate to quantify the number of days a property is rented out.

Revenue Variance

The difference between the actual revenue earned and the budgeted or forecasted revenue.