Explain why and how a business researcher uses factor ...

[RYAN BANYAN]

Explain why and how a business researcher uses factor analysis.

Question 2

Competition can be characterized as all of the following except
 a. competitive c. oligopolistic
  b. monopolistic d. All of the above are correct characterizations.

[wilsonbho]

Answer to Question 1

Factor analysis is a prototypical multivariate, interdependence technique. It is a technique of statistically identifying a reduced number of factors from a larger number of measured variables. The factors themselves are not measured, but instead, they are identified by forming a variate using the measured variables. Factors are usually latent constructs like attitude or satisfaction or an index like social class. A researcher need not distinguish between independent and dependent variables to conduct factor analysis. Factor analysis can be divided into two types: exploratory factor analysis (EFA) and confirmatory factor analysis (CFA). Exploratory factor analysis reveals how many factors exist among a set of variables and what variables match up or load on which factors. A factor loading indicates how strongly correlated a factor is with a measured variable. Factor analysis is considered a data reduction technique that allows a researcher to summarize information from many variables into a reduced set of variates or composite variables.

Answer to Question 2

D
Competition can be characterized as monopolistic (the market is controlled mostly
by one large firm), oligopolistic (the market is controlled by several large firms), and purely competitive (the market is composed of many small firms who are equally competing for resources).