GATE (Graduate Aptitude Test in Engineering) Psychology Research Methods and Statistics-Factor Analysis Study Material (Page 2 of 5)

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Factor Analysis: Advantages and Disadvantages of Factor Analysis


Advantages of Factor Analysis

  • Reduces number of variables by combining variables into a single factor.
  • Identifies inter-related variable groups and analyzes their relationship.

Disadvantages of Factor Analysis

  • It is impossible to explain the factors coming out of factor analysis.
  • Less valid on unreliable measures like self-reports.
  • It i…

… (31 more words) …

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Factor Analysis: Uses of Factor Analysis


Uses of Factor Analysis

  • To determine the unknown variables (latent) and explore underlying structure in the data
  • For parsimony or data reduction
  • For classification or description
  • For scaling
  • For hypothesis testing
  • For data transformation
  • For exploration and mapping