A “factor” is a set of observed variables that have similar response patterns; They are associated with a hidden variable (called a confounding variable) that isn't directly measured. Factors are listed according to factor loadings, or how much variation in the data they can explain.

How do you name factors in factor analysis?

Meaningful names for the extracted factors should be provided. You may like to use previously selected factor names, but on examining the actual items and factors you may think a different name is more appropriate. One factor naming technique is to use the top one or two loading items for each factor.

What is factor analysis and why it is used?

Factor analysis is a powerful data reduction technique that enables researchers to investigate concepts that cannot easily be measured directly. ... Factor analysis is most commonly used to identify the relationship between all of the variables included in a given dataset.