The equation X_i= A_i1F₁+ A_i2F₂₊A_i3F₃+ ... + A_imF_m₊V_iU_i, represents the common factors expressed as linear combinations of the observed variables.

Name: The equation X i = A i1 F 1 + A i2 F 2 + A i3 F 3 + ... + A im F m + V i U i , represents the common factors expressed as linear combinations of the observed variables.
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Question

Quizplus · Accepted Answer

The equation represents observed variables expressed as linear combinations of common factors, not the other way around.

The Equation Xi = Ai1 F1 + Ai2 F2

The Equation X_i= A_i1F₁+ A_i2F₂