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Bachelor Thesis from the year 2009 in the subject Statistics, grade: 1, Vienna University of Technology, language: English, abstract: 1 What is Factor Analysis? Factor Analysis is a method often used in statistics to examine and analyze the relationship between a larger numbers of variables to find a smaller number of Factors which explain the relationship between the original variables. 2 Why we use Factor analysis? Factor analysis began with psychometrics; a field of study which concerns mostly on psychological measurements including measuring the knowledge, personalities or emotions. Later it has been mostly used in social sciences, product management and also marketing. The use of Factor analysis may always come in mind whenever we face huge amount of data and there is a need to find similarities between these amounts of data.

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