Which of the following techniques if used would achieve this objective?

A dataset contains 10 measures of workplace sustainability. The analytics team is in need of producing a single score of sustainability.

Which of the following techniques if used would achieve this objective?
A . Logistic regression
B . Linkage algorithms
C . Factor analysis
D . K means clustering

View Answer

Answer: C

Explanation:

Factor analysis is the technique that, if used, would achieve the objective of producing a single score of sustainability, because it is a technique that reduces the dimensionality of a data set by identifying the underlying factors or latent variables that explain the variation and correlation among the observed variables. Factor analysis can help the analytics team combine the 10 measures of workplace sustainability into a smaller number of factors, and then derive a composite score of sustainability based on the factor loadings and weights. Factor analysis can also help the analytics team simplify and interpret the data, and identify the key drivers of sustainability.

Reference:

• Business Analysis Certification in Data Analytics, CBDA | IIBA®, CBDA Competencies, Domain 3: Analyze Data

• Understanding the Guide to Business Data Analytics, page 17

• Business Data Analytics (IIBA®-CBDA Exam preparation) | Udemy, Section 3: Analyze Data, Lecture 15: Factor Analysis