The equation X_i = A_i1 F₁ + A_i2 F₂ + Ai₃F₃ + ...+ Aim Fm + V_iUi ,represents the common factors expressed as linear combinations of the observed variables.

Name: The equation X i = A i 1 F 1 + A i 2 F 2 + Ai 3 F 3 + ...+ Aim Fm + V i Ui ,represents the common factors expressed as linear combinations of the observed variables.
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Question

Quizplus · Accepted Answer

The equation represents the observed variables (X) as linear combinations of common factors (F) and unique factors (U), not the other way around.

The Equation Xi = Ai1 F1 + Ai2 F2

The Equation X_i = A_i1 F₁ + A_i2 F₂