Ans dimensions ref interdependence techniques nat

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ANS: dimensions REF: Interdependence Techniques NAT: BUSPROG: Analytic 15. Multivariate statistics that make no distinction between independent and dependent variables and seek to identify the underlying structure of a set of data are known as ____________________ techniques. ANS: interdependence REF: Interdependence Techniques NAT: BUSPROG: Analytic ESSAY 1. Discuss the purpose of interdependence techniques. List the statistical techniques that can be used for this method. ANS: Interdependence techniques seek to identify the underlying structure of a set of data. That structure could come in the form of identifying dimension or in identifying groups based on similarity. The most common interdependence methods are factor analysis and cluster analysis. REF: Interdependence Techniques NAT: BUSPROG: Analytic | BUSPROG: Communication 2. Describe factor analysis. ANS: Factor analysis is a prototypical multivariate, interdependence technique. Factor analysis is a technique capable of statistically identifying a reduced number of factors from a larger number of measured variables. The factors themselves are not measured, but instead, they are identified by forming a variate using the measured variables. REF: Performing Factor Analysis NAT: BUSPROG: Analytic | BUSPROG: Communication 3. Explain how cluster analysis can identify market segments. ANS:
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Cluster analysis is a multivariate approach for identifying objects or individuals that are similar to one another in some respect. It classifies individuals or objects into a small number of mutually exclusive and exhaustive groups. Objects or individuals are assigned to groups so that there is great similarity within groups and much less similarity between groups. The cluster should have high internal (within- cluster) homogeneity and external (between-cluster) heterogeneity. Cluster analysis facilitates market segmentation by identifying subjects or individuals who have similar needs, lifestyles, or responses to marketing mixes. REF: Cluster Analysis as a Big Data Tool NAT: BUSPROG: Analytic | BUSPROG: Communication 4. Discuss the three purposes for factor analysis and the corresponding analytical approach for each. ANS: 1. Data reduction. Here, the researcher seeks parsimony. Thus, the major objective is to reduce the number of pieces of information needed to interpret the data. Rather than analyzing fifty variables, we will find it simpler to analyze five factors. Furthermore, a data reduction approach helps identify
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