What is the difference between multiregression analysis and factor analysis? Multiple regression is used to examine multiple independent variables while factor analysis uses a small limited set of related variables Factor analysis determines an estimation of effect, whereas multiple regression groups common variables. Multiple regression determines relationships leaving causation and expiation the researcher, and factor analysis does not. Multiple regression calculates a "best-fit" hyperplane similar to the best-fit line of simple regression, and factor analysis determines relationships, leaving causation and expiation to the researcher