What Is The Purpose Of Factor Analysis?
Factor analysis is a statistical data reduction and analysis technique that strives to explain correlations among multiple outcomes as the result of one or more underlying explanations, or factors. The technique involves data reduction, as it attempts to represent a set of variables by a smaller number.
Function
Factor analysis attempts to discover the unexplained factors that influence the co-variation among multiple observations. These factors represent underlying concepts that cannot be adequately measured by a single variable. For example, various measures of political attitudes may be influenced by one or more underlying factors.
Significance
Factor analysis is especially popular in survey research, in which the responses to each question represent an outcome. Because multiple questions often are related, underlying factors may influence subject responses.
Considerations
Because the purpose of factor analysis is to uncover underlying factors that explain correlations among multiple outcomes, it is important that the variables studied be at least somewhat correlated; otherwise, factor analysis is not an appropriate analytical technique.
Warning
Factor analysis requires the use of a computer, usually with a statistical software program, such as SAS or SPSS. The spreadsheet program Excel cannot conduct factor analysis without a program that expands its statistical capabilities.
Prevention/Solution
One program that enables Excel to conduct more complex statistical analysis, such as factor analysis, is XLStat, which can be purchased online.
Cite This Article
MLA
Hall, Shane. "What Is The Purpose Of Factor Analysis?" sciencing.com, https://www.sciencing.com/what-is-the-purpose-of-factor-analysis-12225143/. 11 October 2009.
APA
Hall, Shane. (2009, October 11). What Is The Purpose Of Factor Analysis?. sciencing.com. Retrieved from https://www.sciencing.com/what-is-the-purpose-of-factor-analysis-12225143/
Chicago
Hall, Shane. What Is The Purpose Of Factor Analysis? last modified March 24, 2022. https://www.sciencing.com/what-is-the-purpose-of-factor-analysis-12225143/