Question:
Which of the following statement(s) is/are correct regarding exploratory factor analysis (EFA) technique?
Which of the following statement(s) is/are correct regarding exploratory factor analysis (EFA) technique?
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EFA helps in data reduction by grouping variables into factors that explain the observed variance, while CFA is used to test a hypothesized factor structure.
Updated On: Nov 21, 2025
- It helps to reduce large number of variables into few numbers of factors.
- It helps researchers to investigate concepts that cannot easily be measured directly.
- It extracts maximum common variance from all variables and put them into a common score.
- A technique used to verify the factor structure of a set of observed variables.
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The Correct Option is A, B, C
Solution and Explanation
Step 1: Understanding Exploratory Factor Analysis (EFA).
EFA is a statistical method used to reduce data by identifying underlying factors that explain correlations between observed variables. It is primarily used to simplify complex datasets.
Step 2: Analyzing the options.
- (A) Correct, EFA is used to reduce a large number of variables into a smaller set of factors, which helps to explain the underlying structure of the data.
- (B) Correct, EFA helps in uncovering latent variables or concepts that are not directly measurable.
- (C) Correct, EFA works by extracting the common variance from all variables, grouping them into factors that explain the variance.
- (D) Incorrect, this description is more aligned with Confirmatory Factor Analysis (CFA), which is used to verify the factor structure rather than explore it.
Step 3: Conclusion.
The correct answers are (A), (B), and (C), as they accurately describe the purpose and function of Exploratory Factor Analysis (EFA).
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