Deck 17: Survey of Other Techniques

Question 1

Path analysis uses ordinary least squares for estimating parameters.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

A causal model with feedback loops is called a nonrecursive model.

Answer 3

True

Question 4

Exogenous variables are variables that are unaffected by other variables in the model.

Question 5

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

Question 6

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

Question 7

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

Question 8

Structural equation models are nonrecursive models.

Question 9

The simplest forecasting method is to forecast the immediate future as a replica of the past and present.

Question 10

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

Question 11

Trend forecasts are best when used to estimate many periods into the future.

Question 12

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

Question 13

Validation is critical in any forecasting.

Question 14

Curve estimation cannot take periodicity into account.

Question 15

Exponential smoothing cannot take periodicity into account.

Question 16

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

Question 17

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

Question 18

Survival analysis is a technique used for analyzing censored data.

Question 19

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

Question 20

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

Question 21

Factor analysis is an exploratory technique.

Question 22

Factor analysis aids in creating index variables.

Question 23

Factor analysis uses correlations among variables to identify subgroups.

Question 24

Rotation causes variables to load higher on one factor, and less on others, bringing the pattern of groups better into focus for interpretation.

Question 25

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

Question 26

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