For a 10-factor model, the analyst must develop 10
A) zero-factors.
B) random-error variances.
C) covariances.
D) sensitivities.

Question

Quizplus · Accepted Answer

In a factor model, sensitivities refer to how responsive a dependent variable is to each factor. For a 10-factor model, an analyst must develop 10 sensitivities, one for each factor, to understand how each factor influences the model's outcome.

For a 10-Factor Model, the Analyst Must Develop 10