Application of Factor Analysis in the Evaluation of Economic Development Levels of Cities in Shandong Province

Abstract

Shandong province is the most populous province in China and at the same time a major economic province. Many aspects of the economic development of Shandong province are very similar to the economic development of China and are highly representative, so it is necessary to study the level of economic development in Shandong province. Nowadays, many fields of research are very comprehensive, i.e. we can observe a lot of variables, but in the actual analysis of research it is difficult to analyse so many variables, so it is usually necessary to use fewer variables to reveal the problem through transformation, which is the problem of dimensionality reduction, the method of dimensionality reduction in multivariate statistics has the method of principal component and factor analysis, principal component is mainly to reduce the dimensionality while factor analysis not only This paper focuses on the use of factor analysis to analyse the variables in Shandong Province. In this paper, we use factor analysis to evaluate the level of economic development in Shandong Province, with data from the Shandong Provincial Bureau of Statistics website in 2021.