F represents ________ in the factor model X_i = Ai1 F₁+ Ai2 F₂+ Ai₃ F₃ + ...+ Aim Fm + V_iU_i? A) a unique factor variable B) the number of common factors C) the common factor D) the number of variables

Question

Quizplus · Accepted Answer

In the given factor model, the variable F represents the common factor. It is the underlying variable that explains the covariance among the observed variables. Therefore, option C is the correct choice. Option A is incorrect because there is no indication of a unique factor variable in the model. Option B is incorrect because the number of common factors is not explicitly specified in the model. Option D is incorrect because the model includes both the number of variables and the number of factors, and F represents the latter.

F Represents ________ in the Factor Model Xi = Ai1

F Represents ________ in the Factor Model X_i = Ai1