Factor Analysis Can Be Used in Which of the Following

question 62

Multiple Choice

Factor analysis can be used in which of the following circumstances?

• A) To identify a smaller set of salient variables from a larger set for use in subsequent multivariate analysis.
• B) To identify a new,smaller set of uncorrelated variables to replace the original set of correlated variables in subsequent multivariate analysis.
• C) To identify underlying dimensions,or factors,that explain the correlations among a set of variables.
• D) All are correct circumstances.

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Definitions:

Requirements of Negotiability

Legal criteria that an instrument must meet to be considered negotiable, allowing it to be transferred from one party to another.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank and is insured by the Federal Deposit Insurance Corporation (FDIC).

Promissory Note

A written promise to pay a specified amount of money to a designated person or entity by a certain date or on demand.

Maker

The individual or entity that creates or signs a negotiable instrument, committing to pay the specified sum to the holder.