The Scree Plot, Such as the One Used in Q1

question 10

Multiple Choice

The scree plot, such as the one used in Q1, represents a plot of?

• A) Each factor against its eigenvalue.
• B) The factor loadings of each variable onto each factor.
• C) The correlations between variables.
• D) The regression coefficient of each variable with each factor.

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Definitions:

Direct Payments

Cash subsidies paid to farmers based on past production levels; a permanent transfer payment unaffected by current crop prices and current production.

Marketing Loans

Loans provided to agricultural producers, typically by a government, using the harvested crops as collateral, allowing farmers to hold their products for higher future prices.

Absolute Increases

Refers to outright growth in a specific numerical value, such as income, over a period, without adjustments for factors like inflation.

Relative Increases

Comparisons of growth or expansion in different areas or items, measured in proportionate terms rather than absolute numbers.