Which of the Following Statements Is Not True About Factor

question 30

Multiple Choice

Which of the following statements is not true about factor rotation?

• A) Through rotation, the factor matrix is transformed into a simpler one that is easier to interpret
• B) Rotation affects the communalities and the percentage of total variance explained
• C) Preferably, variables should load on only one factor
• D) Different rotation methods may identify different factors
• E) One rotation method is varimax

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Definitions:

Output

The quantity of goods or services produced in a given period of time by a firm, industry, or country.

Inverse Demand

A conceptual representation showing the relationship between the price of a good and the quantity demanded, expressed with price as a function of quantity.

Total Costs

The entirety of expenses involved in generating goods or services, covering both constant and fluctuating costs.

Pushcart

A small cart on wheels, often used by vendors to sell goods in public areas.