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Glossary / Lexicon

What is factor analysis?

12/05/2022 | by Patrick Fischer, M.Sc., Founder & Data Scientist: FDS
Factor analysis is a statistical technique used to examine the structure of a data set. It is used to reduce the variables in a data set by grouping similar variables together to create a single variable called a factor. This allows for a better understanding of the relationships between variables. It can also be used to determine which variables contribute most to a particular outcome.
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