Consumer Behavior Research Methods

Factor Analysis

Variance-Covariance Matrix

  • A number of statistical procedures rely on a variance-covariance matrix

  • A variance-covariance matrix is a square matrix that contains the variances and covariances associated with several variables
 
 
  • if one of the variables has a variance = 0 (each value = 1) --> there is "nothing to explain" / no relationship with other variables
 
Example: Variance - Covariance Matrix 
One variable is missing, because cov (s_cb,s_cbrm) is the same as cov (s_cbrm, s_cb)

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