MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Group Essay

MGM600-0803B-02 Applied Managerial Decision-Making - Phase 4 Group Project - Essay Example Factor analysis is a regressive element to showcase the company’s worth and standing in a given period. It does this by combination of factors as the name suggests. It does not allow for what is not factor to impinge in the analysis. It is devoid of any method and simply analytical. It reduces space from larger number of variables to smaller number of factors (Factor Analysis). We are dealing with factor analysis. We want to find out why and when factor analysis is to be preferred to other form of statistics. There is sometimes preference for factor analysis. It takes precedence over other form of statistics. There is the case when factor analysis was preferred over other form of statistics. It is like this. In a case where â€Å"not applicable† was confused with â€Å"strongly disagree† or â€Å"strongly agree† it was ultimately decided the best course of action was to remove â€Å"not applicable† altogether. Nothing was lost (4 Factor Analysis). Figure this out with another system. The cluster analysis will find it difficult to use same example because it treats â€Å"not applicable† as part of the cluster (Cluster Analysis). Even in the case of Multidimensional Scaling the acceptance of â€Å"not applicable† is there (Multivariate Statistics). Thus, we conclude the importance of factor analysis. It significantly narrows down the endeavor of any enterprise by pruning the elements in the analysis. It functions on the basis of relevant