What is multivariate analysis?
In data analytics, we look at different variables (or factors) and how they might impact certain situations or outcomes. For example, in marketing, you might look at how the variable “money spent on advertising” impacts the variable “number ofg, you might want to explore whether there’s a correlation between “weekly hours of exercise” and “cholesterol level.” This helps us to understand why certain outcomes occur, which in turn allows us to make informed predictions and decisions for the future.
There are three categories of analysis to be aware of:
- Univariate analysis, which looks at just one variable
- Bivariate analysis, which analyzes two variables
- Multivariate analysis, which looks at more than two variables
As you can see, multivariate analysis encompasses all statistical techniques that are used to analyze more than two variables at once. The aim is to find patterns and correlations between several variables simultaneously—allowing for a much deeper, more complex understanding of a given scenario than you’ll get with bivariate analysis.