Factor analysis is a method of modeling the covariation among a set of observed variables
as a function of one or more latent constructs. Here, we use the term construct to refer to an
unobservable but theoretically defensible entity, such as intelligence, self-efficacy, or
creativity. Such constructs are typically considered to be latent in the sense that they are not
directly observable (see Bollen, 2002, for a more detailed discussion of latent constructs).
The purpose of factor analysis is to assist researchers in identifying and/or understanding …

This entry provides a concise overview of techniques for testing measurement validity,
developing useful sets of indicators, and identifying latent factor structures. Both confirmatory
and exploratory approaches to factor analysis are discussed. Classical test theory is
emphasized as a helpful framework for specifying and evaluating measurement models.
Examples are provided along with step‐by‐step guidelines to assist researcher decision‐
making during factor analysis. More generally, this entry addresses the concept of …