MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Group Project - Essay Example

MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Group Project MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Group ProjectTitus Rock ManickamOrder No. 24115720 September 2008MGM600-0803B-02 Applied Managerial Decision-Making- Phase 4 Group ProjectIntroductionThere are many multivariate techniques. One of them is the factor analysis. The factor analysis is complex set of rules in the analysis of variables. One can use it as analysis depending on what is to be analyzed.

If the variables are there for the purpose of analysis, then depending on the common factors these variables are said to be linked (Richard B. Darlington).In my case, I can use factor analysis to show my company’s status. I could maintain my company’s position and show the way it is headed through the use of factor analysis. In the end, it will be quite clear what the company’s position is and where it is headed. Factor analysis is a regressive element to showcase the company’s worth and standing in a given period.

It does this by combination of factors as the name suggests. It does not allow for what is not factor to impinge in the analysis. It is devoid of any method and simply analytical. It reduces space from larger number of variables to smaller number of factors (Factor Analysis).The AnalysisWe are dealing with factor analysis. We want to find out why and when factor analysis is to be preferred to other form of statistics. There is sometimes preference for factor analysis. It takes precedence over other form of statistics.

There is the case when factor analysis was preferred over other form of statistics. It is like this. In a case where “not applicable” was confused with “strongly disagree” or “strongly agree” it was ultimately decided the best course of action was to remove “not applicable” altogether. Nothing was lost (4 Factor Analysis). Figure this out with another system. The cluster analysis will find it difficult to use same example because it treats “not applicable” as part of the cluster (Cluster Analysis).

Even in the case of Multidimensional Scaling the acceptance of “not applicable” is there (Multivariate Statistics).ConclusionThus, we conclude the importance of factor analysis. It significantly narrows down the endeavor of any enterprise by pruning the elements in the analysis. It functions on the basis of relevant factors.The factor analysis brings to fore only what is needed for the enterprise. It does away with the non-essentials so that what is left is by and large relevant to business.

Source:Cluster Analysis, http://www.statsoft.com/textbook/stcluan.htmlFactor Analysis, http://www2.chass.ncsu.edu/garson/pa765/factor.htm4 Factor Analysis, http://www.its.ucdavis.edu/telecom/r11/factan.htmlMultivariate Statistics: Multidimensional Scaling (MDS), http://www.socialresearchmethods.net/tutorial/Flynn/mds.htm Principal Components and Factor Analysis, http://www.statsoft.com/textbook/stfacan.htmlR.J. Rummel, Understanding Factor Analysis, http://www.hawaii.edu/powerkills/UFA.HTMRichard B.

Darlington, Factor Analysis, http://www.psych.cornell.edu/Darlington/factor.htm