Factor Analysis Is a Set of Techniques for Studying Interrelationships

question 16

True/False

Factor analysis is a set of techniques for studying interrelationships among variables.This is done by reducing a very large set of variables to a smaller set of new variables (factors)that are more basic in meaning but contain most of the information in the original set.

Identify key factors that facilitate the identification of marketing opportunities.

Understand the impact of the political/legal environment on business practices and consumer protection.

Understand the concept and applications of superordinate goals in reducing intergroup conflict.

Differentiate between various types of group cohesion and their effects on group dynamics.

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Definitions:

Capital Intensity Ratio

A metric that measures the amount of assets needed by a company to generate one dollar of revenue.

Operating Capacity

The maximum amount of work or output a company can produce in a set period under normal working conditions.

Full Capacity Sales

The maximum sales level that a company can achieve with its current resources and capabilities without incurring additional costs.

Operating Capacity

The maximum output that a company can produce and sell with its existing equipment and resources, without incurring unsustainable costs.