# Dictionary:Factor analysis

A method of finding a mathematical relationship among values. Assume that a set of observations ${\displaystyle [x_{1},x_{2},...,x_{k}]}$ can be accounted for by a set of linear relationships involving the factors
${\displaystyle [z_{1},z_{2},...,z_{p}],}$
where ${\displaystyle p
where ${\displaystyle E_{i}}$ is an error term (also called the specific factor). Factor analysis (also called multivariant analysis) is a method of finding the parameters ${\displaystyle a_{ij}}$. Application usually begins with a learning set, a data subset used to establish correlations between observations and the factors being determined, and then proceeds to a predicting set, where the relations are used for predicting the factors associated with additional observations.