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Factor Analysis Ppt

Factor Analysis Ppt

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Published by vipul7589

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Published by: vipul7589 on Nov 25, 2010
Copyright:Attribution Non-commercial


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Factor Analysis
What is factor analysis ?
Factor analysis
is a general name denoting a class of Procedures primarily used for data reduction andsummarization.
Variables are not classified as either dependent orindependent. Instead, the whole set of interdependentrelationships among variables is examined in order todefine a set of common dimensions called
Purpose of Factor Analysis
To identify underlying dimensions called
, thatexplainthe correlations among a set of variables.-- lifestyle statements may be used to measure thepsychographic profile of consumers.
To identify a new, smaller set of uncorrelatedvariables toreplace the original set of correlated variables forsubsequentanalysis such as Regression or Discriminant Analysis.-- psychographic factors may be used asindependentvariables to explain the difference betweenloyal andnon loyal customers.

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