Factor analysis
Factor analysis is used to reduce the number of variables that are used to describe data and determine the relationships between them. During the analysis, variables that correlate with each other are combined into one factor. As a result, the dispersion between components is redistributed, and the structure of factors becomes more understandable. After combining the variables, the correlation of components within each factor becomes higher than their correlation with components from other factors. It is assumed that known variables depend on a smaller number of unknown variables and that we have a random error that can be expressed as follows:
Here, is the load and is the factor.
The concept of factor load is essential. ...
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