Dynamic Deterministic Factor Analysis Using the Averaged Chain Substitution Method

This article presents the applicability of the averaged chain substitution method for performing dynamic deterministic factor analysis. The averaged chain substitution method is the only universal and accurate method for deterministic factor analysis of multiple factor models and of factor models containing a multiple element. The author’s previous and new mathematical expressions for the quantitative determination of the individual factor influences of the participating factor variables over the variation of their result indicator for all types of deterministic factor models containing up to four factor variables are systematized by types of factor models in tabular form. The purpose of this article is to reveal the applicability and accuracy of the averaged chain substitution method for the needs of dynamic deterministic factor analysis.