What Is Meant by the Term 'Latent Variable

question 11

Multiple Choice

What is meant by the term 'latent variable'?

• A) A variable that cannot be measured directly
• B) A variable that acts as a 'master' predictor variable
• C) A variable that is used to predict multiple outcome (i.e. dependent) variables
• D) A variable that is not correlated with any other variables of interest

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Definitions:

Operating Success

A measure of a company's ability to generate profit from its regular business operations.

Financial Statements

Reports that summarize the financial performance and position of a company, including the balance sheet, income statement, and cash flow statement.

Mathematical Relationship

The connection between mathematical variables, often represented through equations or formulas, revealing how changes in one variable affect another.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.