Background:

When a firm is attempting to comprehend the links between several factors in order to improve forecasts, factor analysis may be utilized. A business would, for instance, seek to apply factor analysis to comprehend the connections between client happiness, product quality, and client loyalty.This situation is an excellent fit for factor analysis since it may assist in determining which variables are most crucial for result prediction (Green & Salkind 2017). The connections between variables can also be made simpler via component analysis, which facilitates prediction.

The data that are available and the particular business issue that is being addressed will determine which type of factor analysis is used. For instance, a more complicated technique can be required if the data is extremely complex. Additionally, a more focused strategy could be required if the business challenge is extremely specialized.To simplify the data and determine the connections between various variables, factor analysis would be performed (Green & Salkind 2017). This would enable the business to more accurately forecast consumer happiness, product quality, and brand loyalty.

In contrast to previous studies, factor analysis would concentrate on the connections between variables. Instead of concentrating on examining the interactions between the variables themselves, factor analysis would look at the relationships between the variables. This would make it possible to have a deeper knowledge of the data overall. Factor analysis would also make the data simpler, facilitating prediction. This is because factor analysis would concentrate on the fundamental organization of the data rather than on specific data items (Green & Salkind 2017). Because of the aforementioned, factor analysis would be very helpful for making predictions. This is because it would be simpler to make predictions with the condensed data. Additionally helpful for finding trends in the data is factor analysis. This is because focusing on how variables relate to one another would make it simpler to spot patterns that would otherwise go unnoticed.

References:

Green, S. B. & Salkind, N. J. (2017).Using SPSS for Windows and Macintosh(8thed.). Pearson Education.

Questions:

1. Have you ever had to use this type of analysis, or have examples of when a factor analysis has been used? Also, what type of instruments would be used to gather this information? Green & Salkind (2017) mention analyzing variables with limited range of scores such as a 3pt Likert scale (p. 227).

2. What would be used to ensure unimodal, symmetrically distributed data?

3. Do you think a more focused strategy or less focus strategy would be best suited for the example you provided?