Factor & Cluster Analyses

Factor Analysis
Goals
Data
Process
Results
Factor Analysis Goals
Reduce number of variables
Typically for further analysis
Measure/Understand underlying
construct
e.g. What is intelligence, beauty,
effectiveness?
Factor Analysis Data
Typically numeric
Variables must have some
intercorrelations
Factor Analysis Data
Factor Analysis Process
Linear combination of variables
Types:
Principal Components Analysis
Factor Analysis
Maximize variance in each Factor /
Component, with 0 covariance
between components.
Factor Analysis Results

These numbers show relative

importance of each variable
within a component
Cluster Analysis
Goal
Data
Process
Results
Cluster Analysis Goals
Find subgroups within a larger
group
Create profiles of subgroups for
further action (marketing, medical
intervention, etc.)
Cluster Analysis Data
Typically numeric
Free of correlations
Free of outliers
Cluster Analysis Data
Cluster Analysis Process
K-means clustering
Prespecified number of clusters
Based on Euclidean distances
Hierarchical Tree
Each observation is a cluster, and the
number of clusters is iteratively
reduced
Cluster Analysis Results
Cluster Means
The mean of each variable for all the
observations within the cluster is
output.
The combined set of these means for
each cluster is called the cluster
Centroid.
Cluster Analysis Results