Within statistical factor analysis, the factor regression model,[1] or hybrid factor model,[2] is a special multivariate model with the following form:
where,
The factor regression model can be viewed as a combination of factor analysis model () and regression model ().
Alternatively, the model can be viewed as a special kind of factor model, the hybrid factor model [2]
where, is the loading matrix of the hybrid factor model and are the factors, including the known factors and unknown factors.
Open source software to perform factor regression is available.