Factor analysis can be used in which of the following circumstances?
A) To identify a smaller set of salient variables from a larger set for use in subsequent multivariate analysis.
B) To identify a new,smaller set of uncorrelated variables to replace the original set of correlated variables in subsequent multivariate analysis.
C) To identify underlying dimensions,or factors,that explain the correlations among a set of variables.
D) All are correct circumstances.

Question

Quizplus · Accepted Answer

Factor analysis can be used to achieve any of the three aforementioned objectives. It can be utilized to identify a smaller set of underlying factors that explain the correlations among a larger set of variables, to extract a new, smaller set of uncorrelated variables to replace a set of correlated variables, and to identify the underlying dimensions or factors that explain the correlations among a set of variables. Therefore, all of the options are correct.

Factor Analysis Can Be Used in Which of the Following