Data reduction techniques seek to combine variables that account for patterns of variation in observed dependent variables in such a way that a simpler model is available for analysis. Factor analysis is a data reduction technique that attempts to model or explain a set of variables in terms of their associations. To understand why this technique…

This paper conceptually explains higher-order factor analysis and methods for interpretation. A review of first-order factor analysis is presented that provides the foundation for the summary of second-order factor analysis. Higher order factors are derived from the correlations between the lower-level factors. An example study is provided to make…