A researcher can use factor analysis, for example, to better understand the relationships between customers’ratings of a fast-food restaurant. Assume you ask customers to rate the restaurant on the following six variables: food taste, food temperature, freshness, waiting time, cleanliness, and friendliness of employees. The analyst would like to combine these six variables into a smaller number. By analyzing the customer responses, the analyst might find that the variables food taste, temperature, and freshness combine together to form a single factor of food quality, whereas the variables waiting time, cleanliness, and friendliness of employees combine to form another single factor, service quality.


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