Carole has 50 variables on a questionnaire and would like to reduce that down to about five that explain over 60% of the variance in the data. Carole should use which multivariate statistical technique?
A) regression analysis
B) ANOVA
C) correlation analysis
D) factor analysis
E) cluster analysis

Question

Quizplus · Accepted Answer

Factor analysis is the multivariate statistical technique used to reduce the number of variables in a dataset to a smaller number of underlying factors. The goal is to identify the most important factors that explain the majority of the variance in the data. In this case, Carole is looking to reduce 50 variables down to about five that explain over 60% of the variance, which is precisely what factor analysis is designed to do.

Carole Has 50 Variables on a Questionnaire and Would Like