Factor Loading

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Factor Loading
Message posted by A on December 10, 1999 at 12:00 AM (ET)

Can anyone out there give me a SIMPLE defintion of what exactly factor analysis and factor loading is? I have read numerous defintions from several books and am just very confused. Thanks

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Re: Factor Loading
Message posted by JG on December 10, 1999 at 12:00 AM (ET)

Factor analysis is a somewhat arbitrary procedure for analysing multivariate data. Mathematically it involves matrix algebra and computer analysis.
An example is the concept of 'intelligence' or IQ which is generally a product of factor analysis. Answers to many different questions are combined in a special way (factor loadings ) to produce a number which some people call 'intelligence'. The process is controversial and has a strong element of arbitariness associated with it.

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