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

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

difference between large sample test and small sample test

PERCENTAGES, CALCULATE THE PERCENTAGE OF REFUNDS EXPECTED TO EXCEED $1000 U...

CALCULATE THE PERCENTAGE OF REFUNDS EXPECTED TO EXCEED $1000 UNDER THE CURRENT WITHHOLDING GUIDELINES

Calculate total surplus, When the number of farmers growing wheat in Russia...

When the number of farmers growing wheat in Russia increases, the increase in world supply lowers the world price of wheat. Draw an appropriate diagram to analyze how this chang

Philosophy, what is the aim of statistics?

what is the aim of statistics?

Draw a network diagram for this problem, The project of building a backyard...

The project of building a backyard swimming pool consists of eight major activities and has to be completed within 19 weeks. The activities and related data are given in the follow

Determine the regression equation, The file Midterm  Data.xls has a tab lab...

The file Midterm  Data.xls has a tab labeled "National Grid vs. Alcoa" which presents historical price data for two stocks.  Using the National Grid price as the X-value and the Al

Chi square test for more than two rows, Using Chi Square Test when more tha...

Using Chi Square Test when more than two Rows are Present   To understand this, let us consider the contingency table shown below. It gives us the information about the stage

Multivariate statistical methods, As one of the oldest multivariate stati...

As one of the oldest multivariate statistical methods of data reduction, Principal Component Analysis (PCA)simplifies a dataset by producing a small number of derived

Half of market share, Your company has developed a new product .Your compan...

Your company has developed a new product .Your company is a reputed company with 50% market share of same range of products. Your competitors also come with their new products equa

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