We use factor analysis

ATo test a single directional hypothesis

BTo compare the means of two groups

CTo find one simple correlation between two variables

DTo study the interrelationships among many variables and reduce them to factors ✓ Correct

Correct answer: (D) To study the interrelationships among many variables and reduce them to factors

Explanation

Factor analysis studies the interrelationships among many variables and reduces them to a smaller set of factors.

It uncovers latent dimensions underlying a large pattern of correlations.

Testing a single directional hypothesis is the task of a significance test, not factor analysis.

Comparing the means of two groups is done by a t-test rather than by factor analysis.

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

Factor analysis underpins the construction of multi-item questionnaires and psychological scales.

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