Factor analysis models
A) use given sensitivities to find the pertinent factors.
B) identify the economic variables of significant factors.
C) develop both the sensitivities and the significant factors.
D) use forecasted, future values to develop the model.

Question

Quizplus · Accepted Answer

Factor analysis models are designed to both identify the significant factors (variables) that affect a dataset and develop the sensitivities (how much each factor affects the data) to these factors.

Factor Analysis Models