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

Break-even analysis, a. How can break-even analysis be used in selecting a ...

a. How can break-even analysis be used in selecting a new plant site? b. What are potential advantages and disadvantage of locating a production facility in foreign country i

Median, introduction of median

introduction of median

., Theories of Business forecasting

Theories of Business forecasting

Statistical inquiry, Main stages of Statistical Inquiry The following a...

Main stages of Statistical Inquiry The following are the various stages of a statistical inquiry (1)   Planning the Inquiry: First of all we have to assess the problem und

Correlation, Definition of Correlation According  to prof, king correla...

Definition of Correlation According  to prof, king correlation means that between two series or group  of data  there  exists  some casual connection  prof, king  has also  exp

Angle count method, Angle Count method The method for estimating the pr...

Angle Count method The method for estimating the proportion of the area of a forest which is in fact covered by the bases of trees. An observer goes to each of the number of po

Latin Square design, what is the the Latin Square design? What is its appli...

what is the the Latin Square design? What is its application in research? please explain this term with very simple but with detailed explanation for effective understanding. I hav

Expected average time, Question: A car was machine washes each car in 5 min...

Question: A car was machine washes each car in 5 minutes exactly. It has been estimated that customers will arrive according to a Poisson distribution at an average of 8 per hour.

Explain graph theory, For each of the following scenarios, explain how grap...

For each of the following scenarios, explain how graph theory could be used to model the problem described and what a solution to the problem corresponds to in your graph model.

Index number, give a elementary example for characterstics of index number

give a elementary example for characterstics of index number

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