
S2E36: A Fireside History of Quant, Part 2
Quantitude
The Origins of Factor Analysis
In 1904, Spearman published the very first application of what is now known as factor analysis. He had a hypothesis that these performance measures are positively correlated because there's some underlying shared cause. And O minor hitch, in this case X is something that we can't see. We don't even know if it exists.
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