Factors analysis

Principle component
Cluster analysis

EDU 6950
ADVANCED SATISTICS
1 EDUCATION
 Factors Analysis Definition
 . • A data • A statistical approach • Factor analysis is a general
reduction that can be used to name denoting a class of
technique analyze Procedures primarily used for
• interrelationship among a data reduction and
designed to summarization.
large number of
represent a wide •
• variables and a explain Variables are not classified
range of these variables in terms as either dependent or
attributes on a • of their common • independent. Instead, the
smaller number underlying whole set of interdependent
of dimensions dimension(factor)” • relationships among variables
is examined in order to
• define a set of common
dimensions called Factors.
To identify underlying dimensions called Factors, that
explain the correlations among a set of variables. To identify
Purpose
a new, smaller set of uncorrelated variables to replace the
original set of correlated variables for subsequent analysis
2 such as Regression or Discriminant Analysis.
 Factor analysis decision process

3
 When to use factor analysis
 Data Reduction
 Identification of underlying latent structures