Definition and Understanding of Factor Analysis in Statistics

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Definition and Understanding of Factor Analysis in Statistics is the techniques that aim to reduce the number of explanatory variables (factors) used to explain observational outcomes. New variables are constructed as combinations of the original variables with the aim of identifying a simpler model structure. For example, where a number of variables could be interpreted as measuring different aspects of a complete quantity such as intelligence, it may be possible to construct a composite variable which captures almost as much information as using all of the component variables.