What is the purpose of factor analysis?
A) The purpose of factor analysis is to reduce many individual items into a smaller number of variables.
B) The purpose of factor analysis is to use a set of variables to predict an outcome variable.
C) The purpose of factor analysis is to look for a relationship between two variables.
D) The purpose of factor analysis is to determine if there is a significant difference between the means of two groups.

Question

Quizplus · Accepted Answer

Factor analysis is used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. It reduces the number of variables by grouping them into fewer dimensions, based on their correlations.

What Is the Purpose of Factor Analysis