Question 1

Factor analysis is somewhat similar to discriminant analysis in that each variable is expressed as a linear combination of underlying factors.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following applications is appropriate for using factor analysis?

Accepted Answer

A) to understand the media consumption habits of the target market 
B) to determine if variation in market share can be accounted for by the size of the sales force and advertising expenditures 
C) to identify the characteristics of price-sensitive consumers 
D) Both A and C are correct. 
A) to understand the media consumption habits of the target market 
B) to determine if variation in market share can be accounted for by the size of the sales force and advertising expenditures 
C) to identify the characteristics of price-sensitive consumers 
D) Both A and C are correct. D

Question 3

m represents ________ in the factor model, Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ...+ Aim Fm + ViUi,.

Accepted Answer

A) the number of variables 
B) the number of common factors 
C) the mth standardized variable 
D) the common factors 
A) the number of variables 
B) the number of common factors 
C) the mth standardized variable 
D) the common factors B

Question 4

In order to use factor analysis, it is important that the variables be appropriately measured on an ordinal or nominal scale.

Accepted Answer

A) True 
 B)False

Question 5

When using eigenvalues to determine the number of factors, only factors with eigenvalues greater than .05 are retained.

Accepted Answer

A) True 
 B)False

Question 6

________ is an approach to factor analysis that estimates the factors based only on the common variance.

Accepted Answer

A) Principal components analysis 
B) Common factor analysis 
C) Omega method 
D) Unweighted least squares 
A) Principal components analysis 
B) Common factor analysis 
C) Omega method 
D) Unweighted least squares

Question 7

The factor matrix is also called the factor pattern matrix.

Accepted Answer

A) True 
 B)False

Question 8

If the goal of factor analysis is to reduce the original set of variables to a smaller set of composite variables for use in subsequent multivariate analysis, it is useful to ________.

Accepted Answer

A) compute factor scores for each respondent 
B) compute discriminant scores for each respondent 
C) select surrogate variables 
D) both A and B are correct 
A) compute factor scores for each respondent 
B) compute discriminant scores for each respondent 
C) select surrogate variables 
D) both A and B are correct

Question 9

Which is not a method of factor analysis?

Accepted Answer

A) principal components analysis 
B) common factor analysis 
C) omega method 
D) unweighted least squares 
A) principal components analysis 
B) common factor analysis 
C) omega method 
D) unweighted least squares

Question 10

Bartlett's test of sphericity is one test of the appropriateness of the factor model.

Accepted Answer

A) True 
 B)False

Question 11

When selecting surrogate variables from variables with similarly high loadings, the choice should be based on ________.

Accepted Answer

A) measurement considerations 
B) theoretical considerations 
C) Both A and B are correct 
D) the variable with the highest loading on a factor 
A) measurement considerations 
B) theoretical considerations 
C) Both A and B are correct 
D) the variable with the highest loading on a factor

Question 12

Factor analysis may not be appropriate in all of the following situations except ________.

Accepted Answer

A) a small value for Bartlett's test of sphericity is found 
B) small values of the KMO statistic are found 
C) the variables are not correlated 
D) the variables are correlated 
A) a small value for Bartlett's test of sphericity is found 
B) small values of the KMO statistic are found 
C) the variables are not correlated 
D) the variables are correlated

Question 13

Only in the case of principal components analysis is it possible to compute exact factor scores.

Accepted Answer

A) True 
 B)False

Question 14

Percentage of variance accounted for, scree plot, and a priori determination are all procedures for determining the number of factors.

Accepted Answer

A) True 
 B)False

Question 15

Interpretation is facilitated by identifying the variables that have small loadings on the same factor.

Accepted Answer

A) True 
 B)False

Question 16

A factor model that provides a good fit to the data has many large residuals.

Accepted Answer

A) True 
 B)False

Question 17

Which statement is not true about principal components analysis (PCA)?

Accepted Answer

A) The factors are estimated based only on the common variance. 
B) The total variance in the data is considered. 
C) PCA is recommended when the primary concern is to determine the minimum number of factors that will account for maximum variance in the data for use in subsequent multivariate analysis. 
D) The diagonal of the correlation matrix consist of unities. 
A) The factors are estimated based only on the common variance. 
B) The total variance in the data is considered. 
C) PCA is recommended when the primary concern is to determine the minimum number of factors that will account for maximum variance in the data for use in subsequent multivariate analysis. 
D) The diagonal of the correlation matrix consist of unities.

Question 18

Rotation does not affect the communalities and the percentage of total variance explained.

Accepted Answer

A) True 
 B)False

Question 19

The ________ represents the total variance explained by each factor.

Accepted Answer

A) eigenvalue 
B) percentage of variance 
C) residual 
D) communality 
A) eigenvalue 
B) percentage of variance 
C) residual 
D) communality

Question 20

Factor scores should be computed if the goal of factor analysis is to use the results in subsequent multivariate analysis.

Accepted Answer

A) True 
 B)False

Exam 19: Factor Analysis

Factor analysis is somewhat similar to discriminant analysis in that each variable is expressed as a linear combination of underlying factors.

Which of the following applications is appropriate for using factor analysis?

m represents ________ in the factor model, Xi = Ai1 F1 + Ai2 F2 + Ai3 F3 + ...+ Aim Fm + ViUi,.

In order to use factor analysis, it is important that the variables be appropriately measured on an ordinal or nominal scale.

When using eigenvalues to determine the number of factors, only factors with eigenvalues greater than .05 are retained.

________ is an approach to factor analysis that estimates the factors based only on the common variance.

The factor matrix is also called the factor pattern matrix.

If the goal of factor analysis is to reduce the original set of variables to a smaller set of composite variables for use in subsequent multivariate analysis, it is useful to ________.

Which is not a method of factor analysis?

Bartlett's test of sphericity is one test of the appropriateness of the factor model.

When selecting surrogate variables from variables with similarly high loadings, the choice should be based on ________.

Factor analysis may not be appropriate in all of the following situations except ________.

Only in the case of principal components analysis is it possible to compute exact factor scores.

Percentage of variance accounted for, scree plot, and a priori determination are all procedures for determining the number of factors.

Interpretation is facilitated by identifying the variables that have small loadings on the same factor.

A factor model that provides a good fit to the data has many large residuals.

Which statement is not true about principal components analysis (PCA)?

Rotation does not affect the communalities and the percentage of total variance explained.

The ________ represents the total variance explained by each factor.

Factor scores should be computed if the goal of factor analysis is to use the results in subsequent multivariate analysis.

Introduction to Marketing Research

Defining the Marketing Research Problem and Developing an Approach

Research Design

Exploratory Research Design: Secondary Data

Exploratory Research Design: Qualitative Research

Descriptive Research Design: Survey and Observation

Causal Research Design: Experimentation

Measurement and Scaling: Fundamentals and Comparative Scaling

Measurement and Scaling: Noncomparative Scaling Techniques

Questionnaire and Form Design

Sampling: Design and Procedures

Sampling: Final and Initial Sample Size Determination

Fieldwork

Data Preparation

Frequency Distribution, Cross-Tabulation, and Hypothesis Testing

Analysis of Variance and Covariance

Correlation and Regression

Discriminant and Logit Analysis

Cluster Analysis

Multidimensional Scaling and Conjoint Analysis

Structural Equation Modeling and Path Analysis

Report Preparation and Presentation

International Marketing Research

Filters

m represents ________ in the factor model, X_i= A_i1 F₁+ A_i2 F₂+A_i3 F₃+ ...+ A_im F_m+V_iU_i,.