We use factor analysis

ATo test a single directional hypothesis

BTo measure the difference between two means

CTo find one simple correlation between two variables

DTo uncover the underlying structure among many variables ✓ Correct

Correct answer: (D) To uncover the underlying structure among many variables

Explanation

Factor analysis is used to uncover the underlying structure among many variables.

Testing a single directional hypothesis is done by a t-test or z-test, not factor analysis.

Measuring the difference between two means is the task of a t-test.

Finding one simple correlation between two variables uses a correlation coefficient.

Factor analysis reduces many variables to a few underlying factors.

It thus manages data complexity by grouping correlated variables together.

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