Multivariate Analysis

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Multivariate Analysis ?

Multivariate Analysis uses statistical techniques which allow us to focus and analyze more than 2 statistical variables at once.  It is a collection of methods used when several measurements are made on an object in different samples.  


The measurements are referred to as variables and the objects are called units. Multivariate Analysis helps in summarizing data and reducing the chances of spurious results. Two main multivariate analysis methods are:


  • Dependence Analysis – It is used in predicting the dependency among variables. Eg: Multiple Regression
  • Interdependence Analysis – It is used in analyzing the relationships among variables or objects where none of them are dependent. Eg : Factor Analysis


Examples of Multivariate Data:

Unit

Variable

Student

Grades in Science, Mathematics, English, Physics etc

Company

Expenditures under salary, advertising, raw materials etc

 

Multivariate Analysis is generally used in capability based design, analyzing of concepts in changing scenarios, analyzing alternatives to fulfill customer needs and in identifying critical design drivers and their co-relations across different hierarchical levels.


This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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