Question 1

Generally, the number of factors determined by a scree plot will be one or a few less than that determined by the eigenvalue criterion.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following applications is appropriate for using factor analysis?

Accepted Answer

A)   to understand the media consumption habits of the target market
B)   to determine if variation in market share can be accounted for by the size of the sales force and advertising expenditures
C)   to identify the characteristics of price- sensitive consumers
D)   Both A and C are correct.

Question 3

It is possible to compute as many principal components as there are variables; in doing so, parsimony is gained.

Accepted Answer

A) True 
 B)False

Question 4

Bartlett's test of sphericity is one test of the appropriateness of the factor model.

Accepted Answer

A) True 
 B)False

Question 5

A factor model that provides a good fit to the data has many large residuals.

Accepted Answer

A) True 
 B)False

Question 6

When selecting surrogate variables from variables with similarly high loadings, the choice should be based on _ .

Accepted Answer

A)   theoretical considerations
B)   measurement considerations
C)   the variable with the highest loading on a factor
D)   Both A and B are correct

Question 7

Which method of analysis does not classify variables as dependent or independent?

Accepted Answer

A)   discriminant analysis
B)   regression analysis
C)   analysis of variance
D)   factor analysis

Question 8

Which is not a method of factor analysis?

Accepted Answer

A)   common factor analysis
B)   omega method
C)   unweighted least squares
D)   principal components analysis

Question 9

Communality is .

Accepted Answer

A)   the amount of variance a variable shares with all the other variables being considered
B)   the percentage of the total variance attributed to each factor
C)   the proportion of variance explained by the common factors
D)   both A and C are correct

Question 10

A is a lower triangle matrix showing the simple correlations, r, between all possible pairs of variables included in the analysis.

Accepted Answer

A)   factor matrix
B)   classification matrix
C)   total correlation matrix
D)   correlation matrix

Question 11

If the variables are standardized, the factor model may be presented as .

Accepted Answer

A)   Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm + ViUi
B)   Fi = Wi1 X1 + Wi2 X2 + Wi3 X3 + ... + Wim Xm + ViUi
C)   Xi = Wi1 F1 + Wi2 F2 + Wi3 F3 + ... + Wim Fm + ViUi
D)   Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ... + Aim Fm

Question 12

The various methods of factor analysis are differentiated by the approach used to derive the weights or factor score coefficients.

Accepted Answer

A) True 
 B)False

Question 13

It is recommended that the factors extracted should account for at least of the variance.

Accepted Answer

A)   50 %
B)   60%
C)   65%
D)   70%

Question 14

Factor analysis is somewhat similar to discriminant analysis in that each variable is expressed as a linear combination of underlying factors.

Accepted Answer

A) True 
 B)False

Question 15

Which statement is not true about principal components analysis (PCA) ?

Accepted Answer

A)   The total variance in the data is considered.
B)   PCA is recommended when the primary concern is to determine the minimum number of factors that will account for maximum variance in the data for use in subsequent multivariate analysis.
C)   The factors are estimated based only on the common variance.
D)   The diagonal of the correlation matrix consist of unities.

Question 16

Factor loadings represent the correlations between sets of variables.

Accepted Answer

A) True 
 B)False

Question 17

The factors identified in factor analysis are overtly observed in the population.

Accepted Answer

A) True 
 B)False

Question 18

A _ is a plot of the original variables using the factor loadings as coordinates.

Accepted Answer

A)   scree plot
B)   scattergram
C)   factor loading plot
D)   territorial map

Question 19

What are the steps involved in conducting factor analysis (Figure 19.3 in the text)?

Accepted Answer

The steps involved in conducting factor ...

Question 20

The unrotated factor matrix seldom results in factors that can be interpreted because the factors are correlated with many variables.

Accepted Answer

A) True 
 B)False

Exam 19: Factor Analysis

A is a lower triangle matrix showing the simple correlations, r, between all possible pairs of variables included in the analysis.

Correct AnswerverifiedShow Answer

What are the steps involved in conducting factor analysis (Figure 19.3 in the text)?

Correct AnswerverifiedThe steps involved in conducting factor ...View AnswerShow Answer

A factor model that provides a good fit to the data has many large residuals.

Correct AnswerverifiedShow Answer

Factor loadings represent the correlations between sets of variables.

Correct AnswerverifiedShow Answer

Factor analysis is somewhat similar to discriminant analysis in that each variable is expressed as a linear combination of underlying factors.

Correct AnswerverifiedShow Answer

Which of the following applications is appropriate for using factor analysis?

Correct AnswerverifiedShow Answer

Generally, the number of factors determined by a scree plot will be one or a few less than that determined by the eigenvalue criterion.

Correct AnswerverifiedShow Answer

The unrotated factor matrix seldom results in factors that can be interpreted because the factors are correlated with many variables.

Correct AnswerverifiedShow Answer

Which method of analysis does not classify variables as dependent or independent?

Correct AnswerverifiedShow Answer

A _ is a plot of the original variables using the factor loadings as coordinates.

Correct AnswerverifiedShow Answer

When selecting surrogate variables from variables with similarly high loadings, the choice should be based on _ .

Correct AnswerverifiedShow Answer

Which statement is not true about principal components analysis (PCA) ?

Correct AnswerverifiedShow Answer

If the variables are standardized, the factor model may be presented as .

Correct AnswerverifiedShow Answer

The various methods of factor analysis are differentiated by the approach used to derive the weights or factor score coefficients.

Correct AnswerverifiedShow Answer

The factors identified in factor analysis are overtly observed in the population.

Correct AnswerverifiedShow Answer

Which is not a method of factor analysis?

Correct AnswerverifiedShow Answer

It is recommended that the factors extracted should account for at least of the variance.

Correct AnswerverifiedShow Answer

Communality is .

Correct AnswerverifiedShow Answer

Bartlett's test of sphericity is one test of the appropriateness of the factor model.

Correct AnswerverifiedShow Answer

It is possible to compute as many principal components as there are variables; in doing so, parsimony is gained.

Correct AnswerverifiedShow Answer

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The steps involved in conducting factor ...
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