# Factor analysis

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## Factor analysis

A statistical procedure that seeks to explain a certain phenomenon, such as the return on a common stock, in terms of the behavior of a set of predictive factors.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

## Factor Analysis

The analysis of seemingly unrelated phenomena and their disparate and combined effect on an investment. Factor analysis takes a large number of dependent variables and seeks to isolate the independent variables determining them. Isolating the independent variables (called factors in this context) helps reduce the number of variables that the analyst must study in order to make accurate statements and predictions about the direction of an investment.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Results in Table II indicate that according to KMO measure (0.576) and Bartlett's test (p<0.000) it can be concluded that the gained matrix is not an identity matrix and in this form can be preceded with further statistical procedures of the factor analysis.
Confirmatory Factor Analysis to Evaluate and Test the Effective Factors in Outsourcing of Hospital Services
Table-3: Confirmatory factor analysis for the Urdu Version of Menopause Rating Scale (MRS).
In the factor analysis, the variance loads and each sub-dimension formed were evaluated in terms of item sub-dimension total score correlations.
(A) With every year of the cross section data score factor analysis [y.sub.t,i] is ith regional [S.sub.ti] economic development of an evaluation index data, thus forming a new index system, that is, there are l indicators and n evaluation objects, and then construct a data matrix with n x l elements, that is, [([y.sub.t,i]).sub.nxl].
Comparison between Enhanced Factor Analysis and Principle Component Analysis.
The authors further suggest that this instrument can also be used for conducting a research on the similar sample and then performing other statistical technique like Discriminant Analysis and Confirmatory Factor Analysis to limiting the study into four factors.
However, this could be partly solved by iterations of factor analysis that include the latest input data.
Confirmatory factor analysis (CFA) in this study, with the factors defined in the EFA (6) the confirmatory factor analysis was performed in the AMOS v.18 software environment (10).
In such situations use of factor analysis becomes essential.
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