##### Asked by: Thad Cloidt

asked in category: General Last Updated: 5th February, 2020# What is variance in factor analysis?

**variance in factor analysis**

**variance**is the amount of

**variance**that is shared among a set of items. Items that are highly correlated will share a lot of

**variance**. Communality (also called h2 ) is a definition of common

**variance**that ranges between 0 and 1 .

Likewise, people ask, what is factor analysis used for?

**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.

Similarly, what is factor extraction? A **factor extraction** method that considers the variables in the analysis to be a sample from the universe of potential variables. This method maximizes the alpha reliability of the **factors**. Image Factoring . A **factor extraction** method developed by Guttman and based on image theory.

Likewise, people ask, what does total variance mean?

**Total Variance** Explained. The **Total** column gives the eigenvalue, or amount of **variance** in the original variables accounted for by each component. The % of **Variance** column gives the ratio, expressed as a percentage, of the **variance** accounted for by each component to the **total variance** in all of the variables.

How do you interpret factor analysis?

Complete the following steps to **interpret** a **factor analysis**. Key output includes **factor** loadings, **communality** values, percentage of variance, and several graphs.

- Step 1: Determine the number of factors.
- Step 2: Interpret the factors.
- Step 3: Check your data for problems.