If the variables are standardized,the factor model may be presented as ________. A) F_i= Wi₁ X₁ + Wi₂ X₂ + Wi₃ X₃ + ...+ Wim Xm + ViUi B) X_i = Ai1 F₁ + Ai₂ F₂ + Ai₃ F₃ + ...+ Aim Fm C) X_i = Wi1 F₁ + Wi₂ F₂ + Wi₃ F₃ + ...+ Wim Fm + ViUi D) X_i= Ai1 F₁ + Ai₂ F₂ + Ai3 F₃ + ...+ Aim Fm + ViUi

Question

Quizplus · Accepted Answer

In a standardized factor model, the observed variable Xi is expressed as a linear combination of factors F with coefficients (loadings) Ai, plus a unique factor ViUi.

If the Variables Are Standardized,the Factor Model May Be Presented