Which Statistic Is Most Useful for Comparing Nested Models

question 78

Multiple Choice

Which statistic is most useful for comparing nested models?

• A) RMSR
• B) PNFI
• C) AGFI
• D) Δχ2
• E) NNFI

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Definitions:

Operating Income

The income generated from the primary activities of a business, not including the expenses from interest and taxes.

Intra-Entity Transfers

Transactions of assets, services, or funds within the same legal entity.

Accrual-Based Net Income

Net income calculated using the accrual method of accounting, which records revenue when earned and expenses when incurred, regardless of cash flow.

Upstream Intra-Entity Profits

Profits earned from transactions between a parent company and its subsidiary, where the subsidiary sells goods or services to the parent.