1 Factor Analysis - An Introduction

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Hello, my friends. We will continue our study on correlational design by examining factor analysis. And that's what the next several videos will deal with. This is simply an introduction to factor analysis to let you know what it is. Now, in typical mathematical fashion, I will start with a complex definition, make it as convoluted as I can to try to keep you from understanding it. Then I will show you that there really is an easier way to understand what factor analysis is. Oh, isn't this coffee good. Factor analysis is a correlational method. Now, in other words, this is part of our correlational analysis, but advanced correlational design is a correlational method used to find and describe the underlying factors driving data values for a large set of values. Now, that's about as clear as mud. Factor analysis identifies correlations between and among variables to bind them into one underlying factor driving their values. Now, before I get into this, I want to tell you that in the history of intelligence testing that they used in World War II, what they did is develop the IQ test. And the IQ test was formulated on factor analysis under the assumption that all of these test scores and all of these values could be reduced down into one factor called intelligence quotient. I think you can see the problem with that. I think Gardner, in his multiple intelligence theory, did a little better job on his factor analysis than they did back in World War II. Of course, in World War II, the IQ test was developed by white, middle class, male Northerners. So guess who did well on the test? And if you weren't a white, middle class, Northern male, you probably weren't going to do very well on the test. Here's an example of factor analysis. We'll take a set of variables, variables one, two, three, four, five, and six. And we do an analysis and we find a correlational relationship between variables one, three, and four. In other words, one, three, and four pattern together. Therefore, this might mean that variables one, three, and four may in fact be only one value or factor. Accordingly, large numbers of variables can be reduced to only several factors. Now, it's still clear as mud, isn't it? Get ready. I love pictures. Now, let's consider this set of variables. In this set of variables, we have variable one, variable two, variable three, variable four, variable five, variable six. And we will assume that these six variables determine some phenomenon of interest to us. Now, let's go look here just a second. Remember a minute ago when I said variable one, variable three, and variable four might be correlated? Now, do you notice that the scores are very similar? So we found a strong correlation between verbal one, variable three, and variable four. Therefore, these three variables may, in fact, since they're so strongly correlated, be only one factor. And these three variables are one factor which is determining the phenomenon of interest to us, or explaining all the variability. We discover that variables two and six are highly correlated. Therefore, variable two and six might be another factor. And then we observe the variable five really isn't correlated to anything, so it may be a factor on its own. I want you to look at that again. Here we have a factor, here we have a factor, and here we have a factor. So we have discovered that variables one, three, and four are a factor; variables two and six are a factor; variable five is a factor; and this data set that looked so ominous with six variables is, in fact, explained by only three factors. And factor analysis, for this reason, is often referred to as data reduction. It is a data reduction process, because your six variables were reduced by correlational analysis into three factors of interest to us. Now, as we proceed looking at factor analysis, we only need to determine the assumptions for factor analysis. Certainly, some things must be in place for factor analysis to work. You remember the Pearson r required normality. What does factor analysis require? That's what we've got to look at. We might develop a means of identifying these factors. We might determine if a factor's important or not. And then we can examine the interaction of the variables upon the factors. These are really three or four very great goals. Determine the assumptions in factor analysis, develop a means for identifying the factors, determine if a factor is important or not, and examine the interaction of the variables on the factor. And once you get these four things down with factor analysis, guys, you can take a big data set, reduce it into the factors that determine it, examine those factors to determine which ones are truly important in explaining the variance, and then look at the independent variables in the factor to determine how they make the factor operate. That is really cool. Again, I want to thank you very much for your support. Your patronage means so much to me. I enjoy making these videos, and I hope they prove beneficial. This is first in a series for factor analysis. I hope the other ones turn out as well. In the words of the old Vulcan, "live long and prosper." And again, if you meet a Vulcan, "peace and all long life" is the response. Have a blessed day.
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Channel: Lee Rusty Waller
Views: 116,101
Rating: 4.9195981 out of 5
Keywords: factor, analysis, introduction, definition
Id: MB-5WB3eZI8
Channel Id: undefined
Length: 6min 7sec (367 seconds)
Published: Thu May 23 2013
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