Research Tips

Factor Analysis

Factor analysis is an analytical tool that helps reduce a large number of variables into a more manageable set. It does this based on correlations within the data. For example, suppose TV programmers surveyed people to find out how much of each of the programs shown during a week they watched. Each respondent would have provided that information for dozens of programs, and so the programmers may want to group shows together to see what types of shows were most and least watched (rather than looking at the results for each show individually). They could use their own judgment to form categories (comedy, drama, etc.), but there would be many ways to do this (e.g., genre, day of the week, time of day, types of characters, etc.) and they might choose the wrong method. Factor analysis could reveal which shows belong in the same category by statistically examining the data to identify patterns in actual viewing behavior.