Which of the Following Is True About the Relationship of SEM

question 29

Multiple Choice

Which of the following is true about the relationship of SEM to factor analysis?

• A) The measurement model in SEM is similar to factor analysis in that both techniques have variables with loadings on factors.
• B) SEM,we have to specify which variables are associated with each construct based on theory.
• C) Concepts such as correlations and covariances are common to both the techniques.
• D) A and C are correct.
• E) A,B and C are correct.

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Definitions:

Performance Evaluation System

A structured framework that systematically assesses and measures employee performance based on predefined criteria and objectives.

Bulk Purchase Discount

A reduction in price offered by suppliers to customers who buy large quantities of goods.

Lower Quality Materials

Substandard or inferior raw materials used in the production process, typically resulting in a lower cost and quality of the final product.

Direct Labor Wage Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, used in budgeting and financial analysis.