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

Job application, .what job can you after offering that course

.what job can you after offering that course

#title. .explanatory factor analysis, how to compute reliability coefficien...

how to compute reliability coefficient for extracted factors in factor analysis?

Financial payments technology, Suppose the money supply process is now repr...

Suppose the money supply process is now represented by the following function: where m measures the sensitivity of money supply with respect to the interest rate. (i) Us

Mean and median, The amounts of money won by the top ten finishers in a fam...

The amounts of money won by the top ten finishers in a famous car race are listed below. $1,172,246    $163,659    $440,584    $350,634     $290,596 $186,731    $145,809     $143,2

Correlation coefficient, Consider three stocks A, B and C costing $100 each...

Consider three stocks A, B and C costing $100 each. The annual returns on the three stocks have mean $5 and variance $10. a. Suppose that the returns on the three stocks are i.i

mathematical anxiety, A study was designed to investigate the effects of t...

A study was designed to investigate the effects of two variables - (1) a student's level of mathematical anxiety and (2) teaching method - on a student's achievement in a mathemati

Correlation, Correlation The board of directors of Bata Company is face...

Correlation The board of directors of Bata Company is faced with the problem of estimating what the annual sales might be in a shop to be opened in Bagpur where Bata has not op

Level of significance, Level of Significance: α The main purpose of hyp...

Level of Significance: α The main purpose of hypothesis testing is not to question the computed value of the sample statistic, but to make judgment about the difference between

Good average, Examine properties of good average with reference to AM, GM, ...

Examine properties of good average with reference to AM, GM, HM, MEAN MEDIAN MODE

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