factor analysis

Definition

Statistical technique that can uncover relationship patterns underlying hundreds of interacting phenomenon such as changes in interest rates, inflation, and/or oil prices. Used in fields as diverse as horse racing and financial markets, factor analysis is used to analyze large numbers of dependent variables to detect certain aspects of the independent variables (called factors) affecting those dependent variables - without directly analyzing the independent variables. It enables an analyst to reduce the number of elements to be studied and to observe how they are interlinked. Factor analysis techniques are used in constructing factor models.

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The factor analysis was almost done and we knew that we would be able to move on in a better direction very soon.

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The factor analysis concluded with interesting, relevant, and useful results that were presented during the team meeting last friday afternoon.

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By utilizing factor analysis a correlation between events can be drawn such as the increase in costs of a product and increase in the demand of the same product without increasing said product's production.

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