Factor Analysis And Its Types - Statswork

The analysis of variance is not a mathematical theorem, but rather a convenient method of arranging the arithmetic.- Ronald Fisherr
The inexpensive Factor Analysis is a prominent statistical tool to identify a lot of underlying dormant factors. For more than a century it is used in psychology and also in a wide variety of situations.
Factor analysis explains correlations among multiple outcomes as a result of one or more factors. As it attempts to represent a set of variables by a smaller number, it involves data reduction. It explores unexplained factors that represent underlying concepts that cannot be adequately measured by a single variable. It is most popular nowadays in survey research where the responses to each question represent an outcome. It is because multiple questions are often related and the underlying factor may influence the subject responses.