Factor Analysis

Definition

Factor analysis is a statistical method used to describe variability among observed variables in terms of fewer unobserved variables called factors. It helps identify clusters or groups of related items on psychological tests.

Related terms

Principal Component Analysis (PCA): A statistical procedure that uses orthogonal transformation to convert observations into linearly uncorrelated variables called principal components.

Latent Variables: Variables that are not directly observed but are inferred from other variables that are observed or measured.

Correlation Coefficient:

A statistical measure that calculates the strength of relationship between relative movements of two variables.