An Accountancy Firm Would Like to Establish Groups of Similar

question 13

Multiple Choice

An accountancy firm would like to establish groups of similar taxation policies based on a database they have populated. They are faced with Kaiser's criterion for retaining factors. What rule should they follow for retaining factors?

• A) Retain any factor with an eigenvalue greater than 0.7.
• B) Retain any factor with an eigenvalue greater than 1.
• C) Retain factors before the point of inflexion on a scree plot.
• D) Retain factors with communalities greater than 0.7.

---

Definitions:

Blackberries

Juicy, dark-colored berries that grow on thorny bushes, known for their rich taste and nutritional value.

Correct Verb

The appropriate or accurately conjugated form of a verb that matches the subject in number and person within a sentence.

Springfield

A common place name in the United States, known for being the fictional setting of various TV shows and possibly referring to several real towns.

Johnson's Farm

A placeholder name that could refer to any farm owned by a person or family with the surname Johnson, without specific context or details.