An Assumption in Factor Analysis Is That

question 21

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) factors must be properly named if the analysis of the data is to be actionable.

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, where each participant is a price-taker, with goods being homogeneous.

Price-Output Decisions

Determinations made by companies regarding the price levels and quantity of goods or services to produce, based on factors like cost, demand, and competition.

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition.

Pure Monopoly

A market structure where a single firm controls the entire market supply of a product or service, with no close substitutes available, enabling price setting power.