If a Factor Analysis of a Trait Scale Shows That

question 6

Multiple Choice

If a factor analysis of a trait scale shows that the items load on two independent factors, then the psychologist may conclude that

• A) The scale measures two different traits
• B) The scale measures two separate aspects of the same trait
• C) Either a or b
• D) Neither a nor b

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Definitions:

Lockbox System

A service offered by banks to companies for the collection of payment from customers, involving the use of a special post office box to speed up the deposit process.

Miller-Orr Model

A financial management model that helps firms to decide on the optimal level of cash balances under conditions of uncertainty.

Average Cash Balance

The mean amount of cash held by a company over a specific period of time.

Weighted Average Delay

The average time delayed, taking into account the importance or weight of each component being delayed.