Journal of Data Science

Factor Analysis is one of the data mining methods that can be used to analyse, mainly large-scale, multi-variable datasets. The main objective of this method is to derive a set of uncorrelated variables for further analysis when the use of highly inter-correlated variables may give misleading results in regression analysis. In the light of the vast and broad advances that have occurred in factor analysis due largely to the advent of electronic computers, this article attempt to provide researchers with a simplified approach to comprehend how exploratory factors analysis work, and to provide a guide of application using R. This multivariate mathematical method is an important tool which very often used in the development and evaluation of tests and measures that can be used in biomedical research. The paper comes to the conclusion that the factor analysis is a proper method used in biomedical research, just because clinical readers can better interpret and evaluate their goal and results.

Abstract: Objectives: Exploratory Factor Analysis (EFA) is a very popular statistical technique for identifying potential latent structure underlying a set of observed indicator variables. EFA is used widely in the social sciences, business and finance, machine learning, and the health sciences, among others. Research has found that standard methods of estimating EFA model parameters do not work well when the sample size is relatively small (e.g. less than 50) and/or when the number of observed variables approaches the sample size in value. The purpose of the current study was to investigate and compare some alternative approaches to fitting EFA in the case of small samples and high dimensional data. Results of both a small simulation study, and an application of the methods to an intelligence test revealed that several alternative approaches designed to reduce the dimensionality of the observed variable covariance matrix worked very well in terms of recovering population factor structure with EFA. Implications of these results for practice are discussed..