# Factor Analysis Types – Confirmatory & Exploratory YouTube Lecture Handouts

Dr. Manishika Jain- Join online Paper 1 intensive course. Includes tests and expected questions.

Get video tutorial on: Examrace YouTube Channel

## LET՚S BEGIN! !

## Exploratory Factor Analysis

- Measure underlying factors affecting the variables in a data structure without setting any predefined structure to the outcome
- Not based on prior theory

## Confirmatory Factor Analysis (2 Types)

- Confirm predefined components already explored
- Implemented for reconfirming the effects and possible correlations existing between a set of predetermined factors and variables
- Larger sample size
- Produces inferential statistics

## Traditional Approach

- Based on principle factor analysis rather than common factor analysis
- Knows more about factor loading
- Factor loading - Relation of each variable to the underlying factor. Output of a simple factor analysis looking at indicators of wealth, with just six variables and two resulting factors
- 6 variables: Income, education, occupation, house value, public parks and crimes
- 2 factors: individual socioeconomic status and neighborhood socioeconomic status
- Factor Score – if value of variables are given then factor values can be predicted

## Structural Equation Modeling

- To formulate a relationship between a set of variables and factors and measures causal relationship using linear equation model.
- Can be used for confirming result under scrutiny and testing predicted outcomes

-Manishika