Factor analysis, Applied Statistics

Assignment Help:

Factor analysis (FA) explains variability among observed random variables in terms of fewer unobserved random variables called factors. The observed variables are expressed in terms of linear combinations of the factors, plus "error" terms. Factor analysis originated in psychometrics, and is used in social sciences, marketing, product management, operations research, and other applied sciences that deal with large quantities of data.

Factor analysis is applied to a set of variables to discover coherent subsets that are relatively independent of one another. Variables, correlated with each other and independent of other subsets of variables are combined into factors. Factors, which are generated, are thought to be representative of the underlying processes that have created the correlations among variables.

FA can be exploratory in nature; FA is used as a tool in attempts to reduce a large set ' of variable:: to a more meaningful, smaller set of variables. As FA is sensitive to the magnitude Tolerrelations robust comparisons must be made to ensure the quality of the analysis.


Related Discussions:- Factor analysis

Econometrics, The following data on calcium content of wheat are consistent...

The following data on calcium content of wheat are consistent with summary quantities that appeared in the article “Mineral Contents of Cereal Grains as Affected by Storage and Ins

Keno, Having 11 numbered balls -0 to 10 -into a basket and have 6 spaces t...

Having 11 numbered balls -0 to 10 -into a basket and have 6 spaces to be numbered with the balls selected in each 6 chances and it returned it back to the basket each time. Chanc

Determine the matrix of the transformation, Consider the linear transformat...

Consider the linear transformation (a) Find the image of (3 , -2 , 2) under T. (b) Does the vector (5, 3) belong to the range of T? (c) Determine the matrix of the transf

MEASURING TREND, DISCUSS THE METHODS OF MEASURING TREND

DISCUSS THE METHODS OF MEASURING TREND

Principal components analysis, In the context of multivariate data analysis...

In the context of multivariate data analysis, one might be faced with a large number of v&iables that are correlated with each other, eventually acting as proxy of each other. This

Difference between correlation and regression analysis, Difference between ...

Difference between Correlation and Regression Analysis 1. Degree and Nature  of Relationship: Coefficient of correlation measures   the degree  of covariance  between two vari

Show the hypothesis test, The file Midterm Data.xls has a tab labeled "Inc...

The file Midterm Data.xls has a tab labeled "Income Data 2009". This data is collected income data from a sample of 400 people in 2009. Use a hypothesis test to see whether the av

Determine the probability, For a distribution of scores with = 82 and stand...

For a distribution of scores with = 82 and standard deviation = 2.5, find the following: (Don't forget to sketch the normal curve to help you visualize what you are trying to fi

Find the distribution, The Elementary Teachers' Federation of Ontario make ...

The Elementary Teachers' Federation of Ontario make the following claim on their website as of February 13, 2013: For years, the Elementary Teachers' Federation of Ontario (ETFO

Sampling theory, difference between large sample test and small sample test...

difference between large sample test and small sample test

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd