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Data Science PPT 2.0

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0% found this document useful (0 votes)
55 views12 pages

Data Science PPT 2.0

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MULTIVARIATE

ANALYSIS &
FACTOR ANALYSIS
Ashber Khan 20211-30975
Syed Muhammad Aalyan 20211-30994
Haseeb 20211-31073
Hammad Ahmed 20211-20625
Huzaifa Jamal 20211-31055
Ashna Shahadat (20211-30015)
MULTIVARIATE
ANALYSIS
Multivariate Analysis plays a crucial role in
statistical analysis by allowing researchers to
simultaneously examine the relationships among
multiple variables.

It enables a more comprehensive understanding


of data patterns, helping uncover hidden
structures and dependencies that might not be
apparent when analyzing variables in isolation.
FACTOR
ANALYSIS
Factor Analysis contributes to statistical analysis
by identifying the latent factors that drive
observed correlations among variables.

It aids in simplifying complex datasets by


revealing the essential underlying factors that
influence the observed variability, making it a
valuable tool for dimensionality reduction and
uncovering the structure within multivariate
data.
SIGNIFICANCE
Multivariate Analysis is a powerful statistical method that enables the simultaneous
examination of relationships among multiple variables.
It provides a holistic understanding of complex interactions, uncovering patterns and
dependencies that might be overlooked in univariate or bivariate analyses.

Multivariate Analysis, including methods like Factor Analysis, simplifies data complexity
by concurrently examining relationships among multiple variables. This approach reveals
hidden patterns and shared factors

Provides efficient and accurate results for complex problem.

MULTIVARIATE
SIGNIFICANCE
Factor Analysis is crucial for unveiling the hidden structures or latent factors that contribute
to the observed variability in a dataset..

This process helps simplify the complexity of data, as it allows us to focus on the
commonalities among variables rather than dealing with each one individually.

Factor Analysis, specifically, plays a key role in this simplification by categorizing


observed variables into latent factors. This categorization streamlines data interpretation,
focusing on fundamental elements and reducing the overall complexity of information.

FACTOR
USAGE
Multivariate Analysis is particularly useful when studying relationships among
multiple variables. For instance, in social sciences, it can help explore connections
between income, education, and job satisfaction simultaneously. Similarly, in
business, it's valuable for analyzing the impact of various marketing strategies on
sales, considering multiple factors at once.

LIMITATIONS
While Multivariate Analysis is a powerful tool, it's essential to acknowledge its
limitations. Instances where assumptions, such as normal distribution or
homoscedasticity, are violated may compromise the accuracy of results.
Additionally, in situations where there's a lack of sufficient data or when variables
are highly correlated, the reliability of the analysis might be compromised.
ADVANTAGES &
DISADVANTAGES OF
MULTIVARIATE ANALYSIS
ADVANTAGES
1. Holistic Perspective: Examines relationships among multiple variables
simultaneously.

2. Comprehensive Insights: Identifies complex patterns and correlations.

3. Enhanced Understanding: Reveals interactions that univariate analysis may overlook.

DISADVANTAGES
1. Interpretation Challenges: Results can be complex and challenging to interpret.

2. Sample Size Requirements: Often requires larger sample sizes for robust results.

3. Assumption Sensitivity: Depends on statistical assumptions, and violations can impact


validity.
ADVANTAGES
1. Pattern Simplification: Identifies latent factors simplifying complex data structures.
2. Uncovering Underlying Influences: Reveals hidden patterns among observed
variables.
3. Effective Data Reduction: Reduces dimensionality while retaining essential
information.

DISADVANTAGES
1. Subjectivity: Selection of the number of factors can be subjective.
2. Assumption Dependency: Sensitivity to assumptions like linearity and normality.
3. Computational Demands: May be computationally demanding, especially with large
datasets.
Applications
Market Research:
- Multivariate analysis is employed to analyze consumer behavior, identify market
trends, and segment target audiences based on multiple variables.

Biology:
- In genomics and proteomics, multivariate analysis is used to analyze complex datasets,
such as gene expression profiles, to identify patterns and correlations.

Pattern Recognition and Classification:


- Multivariate analysis plays a crucial role in pattern recognition by examining
relationships among multiple variables simultaneously.
Applications
Dimensionality Reduction in Factor Analysis:**
- Factor Analysis is used to identify latent factors that contribute to observed variables,
reducing the dimensionality of the dataset.
- In fields like finance, it aids in identifying underlying economic factors influencing
various financial indicators.

Model Simplification with Factor Analysis:**


- Factor Analysis is employed to simplify complex models by identifying essential
factors and capturing the common variance among observed variables.
- In fields like sociology, it helps in simplifying models of social phenomena by
identifying core underlying factors..
EXAMPLES
FINANCE: PORTFOLIO MARKETING: CONSUMER
MANAGEMENT BEHAVIOR
Multivariate analysis is employed Analyzing the impact of various
to analyze the relationships marketing channels (e.g., social
among multiple financial assets in media, TV, print) on consumer
a portfolio. preferences and purchasing
decisions.

ECONOMICS: INFLATION HEALTHCARE: PATIENT HEALTH


ASSESSMENT

Extracting underlying factors Analyzing various health


(e.g., supply and demand, indicators (e.g., blood pressure,
monetary policy) contributing to cholesterol levels) to identify
inflation in an economy. latent health factors.

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