When Doing Factor Analysis, the Level of Abstraction Influences the Number

question 8

Multiple Choice

When doing factor analysis, the level of abstraction influences the number of factors identified, with more general theories having _____ factors. Another variable that the text indicates has an influence on the number of factors identified is the _____.

• A) more; type of data
• B) more; sample variability
• C) fewer; type of data
• D) fewer; sample variability

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Definitions:

Obligations

Legal or financial duties or commitments that an entity is required to fulfill.

Collateral Agreements

Contracts that pledge an asset as security for the repayment of a loan, providing a lender a form of protection against the borrower's default.

Unsecured Debt

Debt that is not backed by any collateral, meaning if the borrower defaults, the lender has no secured asset to claim for repayment.

Mortgage

A loan typically used to purchase property or real estate, where the property itself serves as collateral for the loan.