Definition
Factor analysis looks for a small number of hidden (latent) factors that explain the correlations among many measured variables — e.g. items of a satisfaction survey cluster into "price", "quality" and "service" factors. Each variable has loadings on the factors; rotation (Varimax) simplifies the structure so the factors can be named.
Multivariate methods
Typical uses: questionnaire development and validation, psychometrics, marketing research, reducing a set of indicators. Judge data suitability by the correlation matrix and the Kaiser–Meyer–Olkin criterion; you usually need 5–10 observations per variable.
Factor scores can be saved as new variables and used in regression or segmentation. Exploratory factor analysis searches for the structure; confirmatory analysis (in structural equation modelling) tests it against a predefined theory.
In Statistica
Statistics → Multivariate Exploratory Techniques → Factor Analysis offers principal-components and maximum-likelihood extraction, Varimax, Quartimax, Equamax and oblique rotations, a loadings plot, a scree plot and saving of factor scores. Reliability & Item Analysis adds scale reliability (Cronbach's α).
Related terms
- Principal component analysis (PCA)Principal component analysis (PCA) condenses many correlated variables into a few new uncorrelated components that…
- CorrelationCorrelation measures the strength and direction of a linear relationship between two quantities with a number from −1 to 1.
- Cluster analysisCluster analysis divides observations into groups (clusters) so that units within a cluster are as similar as possible…
Knowledgebase guides
FAQ
- How many factors should I extract?
- By eigenvalues above 1, the scree plot and above all interpretability — a factor you cannot name is usually not useful.
- What is rotation?
- Turning the factor axes so that each variable loads on one factor as far as possible. Varimax keeps factors uncorrelated; oblique rotations (Oblimin) allow correlation.
Try it on your own data
Statistica free for 30 days
Full version, no credit card. Or get a pricing estimate in a minute.
Multivariate methods
Updated: September 2026.