Question

Assertions: 
P. Factor analysis reduces a large number of measures to a smaller number of clusters. 
Q. The measures within each cluster are highly interconnected and reflect the same underlying dimensions. 
Which of the following is correct?

• A. Only P is correct
• B. Only Q is correct
• C. Both P and Q are correct
• D. Neither P nor Q is correct

Hint:

Factor analysis is valuable for simplifying large datasets and identifying the key factors that influence them. It is commonly used in psychological testing, market research, and social sciences.

Answer 1

The Correct Option is C

- P: Factor analysis reduces a large number of measures to a smaller number of clusters. This statement is correct. Factor analysis is a statistical technique used to identify patterns or correlations between many variables. By grouping related variables into clusters, the data's complexity is reduced. This technique helps to simplify complex datasets while maintaining essential information about the relationships between variables. It is especially useful when we want to make sense of large, multi-dimensional data.
- Q: The measures within each cluster are highly interconnected and reflect the same underlying dimensions. This statement is also correct. In factor analysis, variables that are grouped together in a cluster (or factor) are expected to be strongly correlated because they share a common underlying dimension or factor. This means that the variables within a cluster measure the same or similar constructs, which reflects the idea of reducing complex data to simpler, meaningful dimensions. Thus, the correct answer is: \[ \boxed{C) Both P and Q are correct} \]