A statistical technique used to identify underlying factors or dimensions that explain patterns of correlations among observed variables. It reduces complex data to simpler structures by grouping related variables together.
Developed by Charles Spearman in 1904 to study intelligence, with 'factor' from Latin facere (to make or do) referring to underlying causes. The technique evolved through the work of Thurstone, Cattell, and others who used it to explore personality, intelligence, and other psychological constructs.
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