Factor analysis is a procedure for decomposing the variance of test scores into common factor variance, specific factor variance, and error variance.

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Factor analysis is indeed used to decompose the variance of test scores (or other types of data) into common factor variance (variance shared by a set of variables due to underlying factors), specific factor variance (variance unique to individual variables), and error variance (variance due to measurement error or other unexplained sources).

Factor Analysis Is a Procedure for Decomposing the Variance of Test