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.

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Definitions:

Anxiety Disorder

Anxiety disorder is a mental health condition characterized by excessive and persistent worry, fear, or anxiety that interferes with daily activities.

Social Anxiety Disorder

A mental health disorder characterized by intense and persistent fear of being judged or negatively evaluated in social or performance situations.

Psychoanalytic

Pertaining to the theory and method of psychological therapy and analysis developed by Sigmund Freud, focusing on unconscious motivations and conflicts.

Repressed Unconscious

A concept in psychoanalytic theory referring to feelings, thoughts, and desires unconsciously held out of awareness, due to being deemed unacceptable or threatening.