Factor analysis - Definition

Factor Analysis is a statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved, uncorrelated variables called factors. The main applications of factor analytic techniques are: (1) to reduce the number of variables and (2) to detect structure in the relationships between variables, that is to classify variables. Therefore, factor analysis is applied as a data reduction or structure detection method



Terms near "Factor analysis"

Factor cost
Factor endowment
Factor income
Factor market
Factor model
Factor portfolio
Factor return
Factor's lien
Factoring
Factors of production
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