# Factor Analysis: Statistics - Research Paper Example

Summary
An author of this research paper example seeks to concern the main principles of the multivariate statistical analysis process and particular technique - factor analysis. Furthermore, the paper will reveal some of the most used methodologies and useful tools in conducting such analysis…

## Extract of sample "Factor Analysis: Statistics"

Download file to see previous pages Factor analysis is defined as a statistical system used to identify variability amongst observed, correlated variables in relations to theoretically reduce number of unobserved variables. In other words, it is possible; the variations between three or four observed variables may be reflected the in fewer unobserved variables and this may act as an example. Factor analysis looks for the common variations in response to unobserved dormant variables. The experimental variables are demonstrated as linear arrangements of the possible factors, plus "error" terms. The statistics added to the interdependencies among the experimental variables can be used later to decrease the group of variables in a dataset. This technique is equal to low rank estimate of the matrix of observed variables. Factor analysis comes from psychometrics, and is normally applied in behavioral & social sciences, product management, operations research, and other fields which have same operation with large quantities of information.This statistical technique is closely associated to principal component analysis, but they are not undistinguishable. Latent variable models, including factor analysis, uses modeling techniques to test hypotheses which is creating error terms like regression, while the principle component analysis is an imaginative statistical technique.Statistical factor analysis divides the various variables for a given ‘badly behaved’ and lower them to a ‘can be uncommon’ factors for modeling reasons....
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