Question

Describe the checks you would undertake to assess the strength of the relationship among the variables before conducting a factor analysis.

Answer 1

Factor analysis is the tech which used reduce the factor from larger set of variables into smaller no of variables.

We checks many assumption before performing Factor Analysis on variables -

To check to assess the strength of the relationship among the variables we consider following points -

A) No perfect multi collinearity: Factor analysis is an inter dependency technique.

There should not be perfect multi collinearity between the variables.

That is factors should not be interdependent with correlation = 1

B) Homoscedasticity: Since factor analysis is a linear function of measured variables, it does not require homoscedasticity between the variables.

The variance of the residuals remains constant.