An Assumption in Factor Analysis Is That

question 124

Multiple Choice

An assumption in factor analysis is that

• A) correlation does not necessarily imply causation.
• B) a single latent trait exists.
• C) things that co-occur tend to have a common cause.
• D) the residual covariance between two items with a common factor partialled out is 0.

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Definitions:

Liability

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits.

Cash Flows

The inflows and outflows of cash and cash equivalents, reflecting the operational, investing, and financing activities of a business.

Wages and Salaries

Compensation paid to employees for their labor, including hourly pay (wages) and fixed annual or monthly pay (salaries).

Operating Activities

Operating activities involve the core business functions of a company, including production, distribution, and sales, determining cash flow from primary business operations.