Exam 17: Survey of Other Techniques

Indirect effects in path analysis are calculated as the product of β coefficients of each pathway.

There is no real difference between an endogenous variable and an independent variable.

Curve estimation cannot take periodicity into account.

Factor analysis is an exploratory technique.

Censored data involve data in which a dichotomous event has not yet occurred.

Validation is critical in any forecasting.

Structural equation models are nonrecursive models.

Path analysis uses ordinary least squares for estimating parameters.

For purposes of interpretation, factor loadings are considered only if their values are at least 5.0.

Autoregressive integrated moving average can take both periodicity and independent variables into account.

Path analysis cannot be used when a causal model has one or more feedback loops.

A task of analysts is to name the factors that arise from factor analysis.

The technique of trend extrapolation analyzes the pattern of past trends.

Probability density is an estimate of the probability of the terminal event occurring during a time interval.

Factor analysis uses correlations among variables to identify subgroups.

Survival analysis is a technique used for analyzing censored data.

When the time variable is continuous, Kaplan-Meier survival analysis is used.

Factor analysis aids in creating index variables.

Forecasting is more useful when it also considers a variety of what-if scenarios.

The total effect in path analysis is the difference between the direct and indirect effects.