Define factor analysis. Differentiate between cluster analysis and factor analysis. 

Factor analysis is a statistical technique used to identify underlying factors or latent variables that explain the patterns of relationships among a set of observed variables. It helps to reduce the complexity of a large number of variables into a smaller number of factors, which capture the shared variance or commonalities among the variables. The goal of factor analysis is to uncover the underlying structure and dimensions of a dataset, providing insights into the underlying constructs or dimensions that drive the observed correlations.

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