Factor Analysis

• The main purpose of Factor Analysis is to group large set of variable

factors into fewer factors. Each factor will account for one or more
component. Each factor a combination of many variables.
https://byjus.com/maths/variance/#example
• Variance vs standard deviation
• The standard deviation is derived from variance and tells you, on average,
how far each value lies from the mean. It’s the square root of variance.
• Both measures reflect variability in a distribution, but their units differ:
• Standard deviation is expressed in the same units as the original values
(e.g., meters).
• Variance is expressed in much larger units (e.g., meters squared)
• Since the units of variance are much larger than those of a typical value of
a data set, it’s harder to interpret the variance number intuitively. That’s
why standard deviation is often preferred as a main measure of variability.
Condition for a Factor Analysis
• Data should be in interval or ratio scale in nature
• Sample size should be at least four to five times more than number of
variables( number of statement)
• Initial set of variables should be highly correlated
• KMO (Kaiser- Meyer-Olkin) value should be between 0 to 1. or
should be greater then .5