What is factor analysis?

Factor analysis is a statistical technique used to identify underlying patterns or factors within a set of observed variables. It helps researchers reduce data complexity by grouping related variables together, making it easier to interpret large datasets. This method is commonly used in psychology, social sciences, and market research to uncover latent constructs or dimensions that explain correlations among observed measures. Factor analysis can guide the creation of questionnaires, scales, or help in data reduction for further analysis.