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Exploratory Factor Analysis


The Factor analysis is a statistical technique used to uncover the unobserved structure (dimensions) of a set of variables. It reduces attribute space from a larger number of variables to a smaller number of factors and does not assume that a dependent variable is specified. Factor analysis could be used in the reduction of a large number of variables, also it is useful in selecting a subset variables out of a large set based on principal components factors. Not only that, exploratory factor analysis assists in selection of a factor of set of variables to be treated as uncorrelated when treating multicollinearity in multiple regression. It equally used in identifying a cluster of cases as well as outliers to mention but a few.

May 12, 2008 - Posted by | Statistics |

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