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Tuesday, December 13, 2011

Finding your Pepsis - A case of Factor Analysis in a real world application?



In the video above there will be a phrase that will catch your attention:
Find the Pepsis

At first this is unlikely to make sense, afterall surely there is only one Pepsi, right? Wrong is actually the correct answer.

Instead of looking for the single best combination of ingredients to satisfy everyone you should look for the combination of ingredients that satisfies each group.

With the right data this could be achieved through Factor Analysis.

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