When Selecting Surrogate Variables from Variables with Similarly High Loadings,the

question 14

Multiple Choice

When selecting surrogate variables from variables with similarly high loadings,the choice should be based on ________.

• A) theoretical considerations
• B) measurement considerations
• C) Both A and B are correct
• D) the variable with the highest loading on a factor

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Definitions:

Merger

The combination of two or more companies into a single entity, typically involving the absorption of one by the other.

Securities Act of 1933

A United States federal law enacted as a result of the stock market crash of 1929, requiring that securities sold in the United States be registered and that investors receive significant information about securities being offered.

Due Diligence Defense

A legal defense used in securities law, indicating that the defendants conducted a thorough investigation and did not find any misrepresentations or omissions.

Prospectus

A formal document that companies must publish when offering their shares to the public, detailing their business and financial status.