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

Probability, 2.1 Modern hotels and certain establishments make use of an el...

2.1 Modern hotels and certain establishments make use of an electronic door lock system. To open a door an electronic card is inserted into a slot. A green light indicates that the

Questionnaire, Framing of Questionnaire: Questionnaire is a schedule of...

Framing of Questionnaire: Questionnaire is a schedule of questions which is sent to the respondents for filling in by them in their own handwriting together the information rel

Quota sampling, Quota sampling Under this method enumerators shall sele...

Quota sampling Under this method enumerators shall select the respondents in place of those not available, as per the quota fixed according  to guide lines   provided to them.

Write down the payoff matrix, Two individuals, player 1 and player 2, are  ...

Two individuals, player 1 and player 2, are  competing in an auction to obtain a valuable object. Each player bids in a sealed envelope, without knowing the bid of the other player

The incidence of occupational disease , The incidence of occupational disea...

The incidence of occupational disease in an industry is such that the workers have a 20% chance of suffering from it. What is the probability that out of six workers 4 or more will

Regression and anova, The first step in this case is to ensure that you ar...

The first step in this case is to ensure that you are adequately clear on the General Linear Model and its relationship to both ANOVA and regression. The distinction is approxim

Determine how the ordinary least squares, Question Following the general...

Question Following the general methodology used by econometricians as explained in the session for week 1 (eight steps), explain how you would proceed to determine if a good com

Quantitative Models, Consider the following new business venture. An agent ...

Consider the following new business venture. An agent is considering investment in one of three real estate parcels: • Option 1: multiunit rentals • Option 2: commercial building

QUARTILE DEVIATION, Examples of grouped, simple and frequency distribution ...

Examples of grouped, simple and frequency distribution data

Evaluate minimum capability requirement, You are currently working wit...

You are currently working with a supplier who is producing a shaft whose diameter specification is 6.00 ± .003 inches.  Currently, the process is yielding shafts wit

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