Having at Least Three Observed Variables for Each Latent Construct

question 78

True/False

Having at least three observed variables for each latent construct is a way to help make sure that the model is identified.

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Definitions:

Machine-Hours

Machine-hours represent a measure of production time, indicating the number of hours that machinery is in operation during a certain period.

Machining Department

A section within a manufacturing facility where materials are cut, shaped, and finished into parts using machines and tools.

Finishing Department

A stage in manufacturing where products undergo final processes such as polishing, painting, or packaging before being ready for sale.

Predetermined Overhead Rate

A rate calculated at the beginning of the fiscal period to estimate indirect costs based on a certain activity, such as machine hours or labor hours.