Bachelor Thesis from the year 2009 in the subject Mathematics - Statistics, grade: 1, Vienna University of Technology, language: English, abstract: 1 What is Factor Analysis?Factor Analysis is a method often used in statistics to examine and analyze therelationship between a larger numbers of variables to find a smaller number ofFactors which explain the relationship between the original variables. 2 Why we use Factor analysis?Factor analysis began with psychometrics; a field of study which concerns mostlyon psychological measurements including measuring the knowledge, personalitiesor emotions. Later it has been mostly used in social sciences, productmanagement and also marketing. The use of Factor analysis may always comein mind whenever we face huge amount of data and there is a need to findsimilarities between these amounts of data.