SEM Has the Following Characteristics

question 52

Multiple Choice

SEM has the following characteristics:

• A) representation of constructs as unobservable or latent factors in dependence relationships.
• B) estimation of multiple and interrelated dependence relationships incorporated in an integrated model.
• C) explanation of covariance among the observed variables.
• D) incorporation of measurement error in an explicit manner.
• E) All of the above

---

Definitions:

Ordering Costs

Expenses associated with placing and receiving orders for goods or services, including administrative costs and transportation.

Statistical Safety Stock

The level of extra inventory a company holds to protect against uncertainties in demand or supply.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points relative to its mean.

Service Level

A measure of the quality and performance of a service, often reflecting the degree to which customer expectations are met.