# Factor Analysis Types – Confirmatory & Exploratory YouTube Lecture Handouts

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Factor Analysis: 2 Types – Confirmatory & Exploratory

## 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

• Based on principle factor analysis rather than common factor analysis

• 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