Factor analysis

Factor analysis is a statistical technique that originated in psychometrics. It is used in the social sciences and in marketing, product management, operations research, and other applied sciences that deal with large quantities of data. The objective is to explain the most of the variability among a number of observable random variables in terms of a smaller number of unobservable random variables called factors. The observable random variables are modeled as linear combinations of the factors, plus "error" terms.

Related Topics:
Statistical - Psychometrics - Marketing - Product management - Operations research - Random variable - Linear combination - Error

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