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

Standard deviation, Standard Deviation The main drawback of the deviati...

Standard Deviation The main drawback of the deviation measures of dispersion, as discussed earlier, is that the positive and negative deviations cancel out each other. Use of t

Physics, fixed capacitor and variable capacitor

fixed capacitor and variable capacitor

Population census, what are the challenges affecting population census in d...

what are the challenges affecting population census in developing countries

Binomial distribution, Binomial Distribution Binomial distribution  was...

Binomial Distribution Binomial distribution  was discovered by swiss mathematician James  Bernonulli, so this distribution is called as Bernoulli distribution also, this is a d

Case # 2 , Case Problem: A Bipartisan Agenda for Change In a study conducte...

Case Problem: A Bipartisan Agenda for Change In a study conducted by Zogby International, more than 700 New Yorkers were polled to determine whether the New York state government w

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.

Statisttics., Explain any two applications of statistics

Explain any two applications of statistics

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