Which Statement Is Not True of Exploratory Factor Analysis (EFA)

question 13

Multiple Choice

Which statement is not true of exploratory factor analysis (EFA) ?

• A) EFA identifies the factor structure or model for a set of variables.
• B) EFA establishes the number of principal underlying factors in the data.
• C) EFA identifies the pattern seen in the correlations of each variable to the factors.
• D) EFA confirms the number of constructs identified in previous research.

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Definitions:

Prime Cost

Direct materials cost plus direct labor cost.

Cost Of Goods Manufactured

The total expense incurred to produce goods over a specific period, including labor, materials, and overhead.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the financial health of a company's core activities.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased by customers.