Certificate in Business Data Analytics (CBDA) — Question 54

A dataset contains 10 measures of workplace sustainability. The analytics team is in need of producing a single score of sustainability.
Which of the following techniques if used would achieve this objective?

Answer options

• A. K means clustering
• B. Logistic regression
• C. Factor analysis
• D. Linkage algorithms

Correct answer: C

Explanation

Factor analysis is the appropriate technique as it reduces multiple measures into fewer factors, allowing for a consolidated sustainability score. K means clustering and linkage algorithms focus on grouping data points rather than summarizing metrics, while logistic regression is used for prediction rather than dimensionality reduction.