Question 1

How does the researcher decide how many factors to retain?

Accepted Answer

Two of the most widely used methods to decide:
1. Latent root criterion - a measure of the amount of variance a particular factor represents. Factors that have a latent root (also called an eigenvalue) of one or higher are retained. Less than 1 is considered insignificant and not retained. 
 "2. Percentage of variance explained. Factor solution should account for a minimum of 60% of the total variance.
In most situations, the number of factors retained is based on the size of the latent root, the percentage of variables extracted, and the ability to logically name the resulting factors.

Question 2

What is an advantage of the nonhierarchical clustering over the hierarchical clustering procedure?

Accepted Answer

A)  In nonhierarchical clustering, objects can be removed from an early-formed cluster and reassigned to another cluster formed later in the sequence. 
B)  In nonhierarchical clustering, objects cannot be removed from an early-formed cluster and reassigned to another cluster formed later in the sequence. 
C)  Results are more robust with nonhierarchical clustering compared to hierarchical clustering. 
D)  Nonhierarchical clustering is much quicker and requires less computing capability than hierarchical clustering. 
E)  Nonhierarchical clustering provides a simpler solution than does hierarchical clustering. 
A)  In nonhierarchical clustering, objects can be removed from an early-formed cluster and reassigned to another cluster formed later in the sequence. 
B)  In nonhierarchical clustering, objects cannot be removed from an early-formed cluster and reassigned to another cluster formed later in the sequence. 
C)  Results are more robust with nonhierarchical clustering compared to hierarchical clustering. 
D)  Nonhierarchical clustering is much quicker and requires less computing capability than hierarchical clustering. 
E)  Nonhierarchical clustering provides a simpler solution than does hierarchical clustering. A

Question 3

Cluster analysis enables researchers to combine objects into groups so that objects in each of the groups are similar to one another and different from objects in all other groups.

Accepted Answer

A) True 
 B)False  True

Question 4

Carole has 50 variables on a questionnaire and would like to reduce that down to about five that explain over 60% of the variance in the data. Carole should use which multivariate statistical technique?

Accepted Answer

A)  regression analysis 
B)  ANOVA 
C)  correlation analysis 
D)  factor analysis 
E)  cluster analysis 
A)  regression analysis 
B)  ANOVA 
C)  correlation analysis 
D)  factor analysis 
E)  cluster analysis

Question 5

An oblique solution means that the factors are rotated so that they are independent of one another and the correlation between them is 0.

Accepted Answer

A) True 
 B)False

Question 6

What is factor analysis and when would the business researcher use it?

Accepted Answer

The answer of What is factor analysis and when would...

Question 7

If a researcher desires to rotate a factor analysis solution so that the factors are independent of one another and the correlation between them is 0, which factor rotation solution should be used?

Accepted Answer

A)  perpendicular 
B)  orthogonal 
C)  oblique 
D)  parallel 
E)  complete 
A)  perpendicular 
B)  orthogonal 
C)  oblique 
D)  parallel 
E)  complete

Question 8

Total variance can be divided into all of the following types of variance EXCEPT _____.

Accepted Answer

A)  error 
B)  common 
C)  unique 
D)  linear 
E)  all of these choices are types of variance that make up total variance 
A)  error 
B)  common 
C)  unique 
D)  linear 
E)  all of these choices are types of variance that make up total variance

Question 9

Agglomerative and divisive approaches to cluster analysis are types of _____ clustering procedures.

Accepted Answer

A)  hierarchical 
B)  nonhierarchical 
C)  orthogonal 
D)  oblique 
E)  dependence 
A)  hierarchical 
B)  nonhierarchical 
C)  orthogonal 
D)  oblique 
E)  dependence

Question 10

Laurie knows that the unique and error variances are a relatively small portion of the total variance and wants to reduce the original set of variables into a smaller set of composite variables. Which type of multivariate analysis technique would be most appropriate for Laurie to use?

Accepted Answer

A)  common factor analysis 
B)  k-means cluster analysis 
C)  principle components factor analysis 
D)  regression analysis 
E)  ANOVA 
A)  common factor analysis 
B)  k-means cluster analysis 
C)  principle components factor analysis 
D)  regression analysis 
E)  ANOVA

Question 11

In PLS-SEM, the blindfolding procedure examines the predictive relevance of the model.

Accepted Answer

A) True 
 B)False

Question 12

The _____ variance is that portion of the total variance that is specific to only one variable.

Accepted Answer

A)  error 
B)  common 
C)  unique 
D)  singular 
E)  univariate 
A)  error 
B)  common 
C)  unique 
D)  singular 
E)  univariate

Question 13

Factor analysis is a statistical technique that develops _____ combinations of variables that summarize the original variables based on their underlying patterns.

Accepted Answer

A)  curvilinear 
B)  linear 
C)  nonlinear 
D)  normal 
E)  logarithmic 
A)  curvilinear 
B)  linear 
C)  nonlinear 
D)  normal 
E)  logarithmic

Question 14

When would a researcher choose to partial least squares structural equation modeling (PLS-SEM)?

Accepted Answer

The answer of When would a researcher choose to partial...

Question 15

What is the difference between dependence and interdependence techniques? Give two examples of multivariate statistical techniques for each.

Accepted Answer

The answer of What is the difference between dependence and...

Question 16

Two of the most widely used methods to decide the number of factors to retain are the _____.

Accepted Answer

A)  hierarchical and nonhierarchical criteria 
B)  dependence and interdependent criteria 
C)  oblique and orthogonal criteria 
D)  latent root and percentage of variance criteria 
E)  loading and varimax criteria 
A)  hierarchical and nonhierarchical criteria 
B)  dependence and interdependent criteria 
C)  oblique and orthogonal criteria 
D)  latent root and percentage of variance criteria 
E)  loading and varimax criteria

Question 17

_____ refers to a variable loading on more than one factor.

Accepted Answer

A)  Orthogonal loading 
B)  Oblique loading 
C)  Hierarchical loading 
D)  Communality 
E)  Cross loading 
A)  Orthogonal loading 
B)  Oblique loading 
C)  Hierarchical loading 
D)  Communality 
E)  Cross loading

Question 18

Latent root criterion is the most widely used method to decide the number of factors.

Accepted Answer

A) True 
 B)False

Question 19

Estimates of the predictive power of each independent variable in discriminant analysis are called _____.

Accepted Answer

A)  z-scores 
B)  k-means 
C)  hits 
D)  centroids 
E)  discriminant weights 
A)  z-scores 
B)  k-means 
C)  hits 
D)  centroids 
E)  discriminant weights

Question 20

_____ analysis uses all of the variance in the data set when performing factor analysis.

Accepted Answer

A)  K-means 
B)  Hierarchical 
C)  Nonhierarchical 
D)  Principle components 
E)  Common factor 
A)  K-means 
B)  Hierarchical 
C)  Nonhierarchical 
D)  Principle components 
E)  Common factor

How does the researcher decide how many factors to retain?

What is an advantage of the nonhierarchical clustering over the hierarchical clustering procedure?

Cluster analysis enables researchers to combine objects into groups so that objects in each of the groups are similar to one another and different from objects in all other groups.

Carole has 50 variables on a questionnaire and would like to reduce that down to about five that explain over 60% of the variance in the data. Carole should use which multivariate statistical technique?

An oblique solution means that the factors are rotated so that they are independent of one another and the correlation between them is 0.

What is factor analysis and when would the business researcher use it?

If a researcher desires to rotate a factor analysis solution so that the factors are independent of one another and the correlation between them is 0, which factor rotation solution should be used?

Total variance can be divided into all of the following types of variance EXCEPT _____.

Agglomerative and divisive approaches to cluster analysis are types of _____ clustering procedures.

Laurie knows that the unique and error variances are a relatively small portion of the total variance and wants to reduce the original set of variables into a smaller set of composite variables. Which type of multivariate analysis technique would be most appropriate for Laurie to use?

In PLS-SEM, the blindfolding procedure examines the predictive relevance of the model.

The _____ variance is that portion of the total variance that is specific to only one variable.

Factor analysis is a statistical technique that develops _____ combinations of variables that summarize the original variables based on their underlying patterns.

When would a researcher choose to partial least squares structural equation modeling (PLS-SEM)?

What is the difference between dependence and interdependence techniques? Give two examples of multivariate statistical techniques for each.

Two of the most widely used methods to decide the number of factors to retain are the _____.

_____ refers to a variable loading on more than one factor.

Latent root criterion is the most widely used method to decide the number of factors.

Estimates of the predictive power of each independent variable in discriminant analysis are called _____.

_____ analysis uses all of the variance in the data set when performing factor analysis.

Business Research for the Twenty-First Century

Overview of the Research Process

Ethics in Business Research

Defining the Research Problem and Reviewing the Literature

The Nature and Sources of Secondary Business Data

Conceptualization and Research Design

Sampling Approaches and Considerations

Methods of Collecting Primary Data

Measurement and Scaling

Questionnaire Design

Basic Data Analysis for Qualitative Research

Basic Data Analysis for Quantitative Research

Testing Hypotheses in Quantitative Research

Examining Relationships Using Correlation and Regression

Reporting and Presenting Research

Filters

Exam 15: Other Multivariate Techiques

How does the researcher decide how many factors to retain?

What is an advantage of the nonhierarchical clustering over the hierarchical clustering procedure?

Cluster analysis enables researchers to combine objects into groups so that objects in each of the groups are similar to one another and different from objects in all other groups.

Carole has 50 variables on a questionnaire and would like to reduce that down to about five that explain over 60% of the variance in the data. Carole should use which multivariate statistical technique?

An oblique solution means that the factors are rotated so that they are independent of one another and the correlation between them is 0.

What is factor analysis and when would the business researcher use it?

If a researcher desires to rotate a factor analysis solution so that the factors are independent of one another and the correlation between them is 0, which factor rotation solution should be used?

Total variance can be divided into all of the following types of variance EXCEPT _____.

Agglomerative and divisive approaches to cluster analysis are types of _____ clustering procedures.

Laurie knows that the unique and error variances are a relatively small portion of the total variance and wants to reduce the original set of variables into a smaller set of composite variables. Which type of multivariate analysis technique would be most appropriate for Laurie to use?

In PLS-SEM, the blindfolding procedure examines the predictive relevance of the model.

The _____ variance is that portion of the total variance that is specific to only one variable.

Factor analysis is a statistical technique that develops _____ combinations of variables that summarize the original variables based on their underlying patterns.

When would a researcher choose to partial least squares structural equation modeling (PLS-SEM)?

What is the difference between dependence and interdependence techniques? Give two examples of multivariate statistical techniques for each.

Two of the most widely used methods to decide the number of factors to retain are the _____.

_____ refers to a variable loading on more than one factor.

Latent root criterion is the most widely used method to decide the number of factors.

Estimates of the predictive power of each independent variable in discriminant analysis are called _____.

_____ analysis uses all of the variance in the data set when performing factor analysis.

Business Research for the Twenty-First Century

Overview of the Research Process

Ethics in Business Research

Defining the Research Problem and Reviewing the Literature

The Nature and Sources of Secondary Business Data

Conceptualization and Research Design

Sampling Approaches and Considerations

Methods of Collecting Primary Data

Measurement and Scaling

Questionnaire Design

Basic Data Analysis for Qualitative Research

Basic Data Analysis for Quantitative Research

Testing Hypotheses in Quantitative Research

Examining Relationships Using Correlation and Regression

Reporting and Presenting Research

Filters