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

Express the null hypothesis, Examine the given statement, then express the ...

Examine the given statement, then express the null hypothesis H0 and the alternative hypothesis H1 in symbolic form. The mean weight of women who won a beauty pageant is equal t

JET Copies Case Problem, Read the “JET Copies” Case Problem on pages 678-67...

Read the “JET Copies” Case Problem on pages 678-679 of the text. Using simulation estimate the loss of revenue due to copier breakdown for one year, as follows: 1. In Excel, use a

Communaiities, The cornlnunalities h j represent the fraction of the tota...

The cornlnunalities h j represent the fraction of the total variance' 'accounted for of variabie j. Ry calculating the communalities we can keep track of how much of-the orig

Define the term multicollinearity, Question: (a) (i) Define the term ...

Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing values

Standard erro, practical application of standard error

practical application of standard error

Index Number of formulae, discuss the mathematical test of adequacy of inde...

discuss the mathematical test of adequacy of index number of formulae. prove algebraically that the laspeyre, paasche and fisher price index formulae satisfies this test. What is

O-give curves, real time applications on graphical representation of o-give...

real time applications on graphical representation of o-give curves

Lorenz curve , Lorenz Curve   It is a graphic method of measur...

Lorenz Curve   It is a graphic method of measuring dispersion. This curve was devised by Dr. Max o Lorenz a famous statistician.  He used this technique for wealth it i

Concepts of statistics, what are the importance, uses,optimums and applicat...

what are the importance, uses,optimums and applications of the following in agriculture field experiments; 1.standard deviation 2.standard error 3. coefficient of variation

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