##### Asked by: Dewey Telles

asked in category: General Last Updated: 18th March, 2020# What is an example of factor analysis?

**example**, people may respond similarly to questions about income, education, and occupation, which are all associated with the latent variable socioeconomic status. In every

**factor analysis**, there are the same number of

**factors**as there are variables.

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Regarding this, what do you mean by factor analysis?

**Factor analysis** is a statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called **factors**. **Factor analysis** is related to principal component **analysis** (PCA), but the two **are** not identical.

Subsequently, question is, what is the basic 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.

Keeping this in consideration, what are the types of factor analysis?

There are two **types of factor** analyses, exploratory and confirmatory. Exploratory **factor analysis** (EFA) is method to explore the underlying structure of a set of observed variables, and is a crucial step in the scale development process.

How do you perform a factor analysis?

- Factor Analysis in SPSS To conduct a Factor Analysis, start from the “Analyze” menu.
- This dialog allows you to choose a “rotation method” for your factor analysis.
- This table shows you the actual factors that were extracted.
- E.
- Finally, the Rotated Component Matrix shows you the factor loadings for each variable.