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:

Net Income

Refers to the total profit of a company after all expenses and taxes have been subtracted from revenue.

Sales Decrease

A reduction in the amount of products or services sold by a business over a given period.

Full Capacity

The highest amount of products or services a business can consistently generate during a specific timeframe under standard conditions.

Fixed Assets

Long-term tangible assets used in the operation of a business, not expected to be converted to cash within a year.