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, Sampling A  Population  is a collection of all the data point...

Sampling A  Population  is a collection of all the data points being studied. For example, if we are studying the annual incomes of all the people in India, then the population

Determine percent of population in city - bayes theoram, (1) Assume we cat...

(1) Assume we categorize voters in a city as havingless educationand those havingmoreeducation. Those with less education have less than a college degree; those with more education

Changes in a particular plant , Scenario : Mrs dick's year 1s and 2s carrie...

Scenario : Mrs dick's year 1s and 2s carried out a level-one science investigation to explain the changes in a particular plant over a period of time.  As part of the investigation

Aviation legislation - SUPPLEMENTAL TYPE CERTIFICATION, JAR 21 SUPPLEMENTAL...

JAR 21 SUPPLEMENTAL TYPE CERTIFICATION JAR 21 Part E introduces the need for Supplemental Type Certification when a manufacturer wishes to make major changes to the Type Desig

Universe or population, Universe or Population The word universe as use...

Universe or Population The word universe as used in statistics denotes the aggregate from which a sample is to be taken. According to Simpson and Kafka, a universe or populatio

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

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

Mode for grouped data, Grouped Data For calculating mode from a...

Grouped Data For calculating mode from a frequency distribution, the following formula   Mode = L mo +  x W where,

Primary and secondary data, Primary and Secondary Data: Primary Data: ...

Primary and Secondary Data: Primary Data: These data are those are collected for the first time. Thus primary data are original in character and gathered   by actual observat

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