Hi Ben @bengloger ,
Your first assumption is not entirely correct;
the Factor can take a number, but it also accepts, for instance, different numbers per point…
In this example, the Noise Texture outputs a value between 0 and 1 for each point in 3D Space and so, depending on where a surface point lies in space, it gets its Color from the Mixing of blue and yellow, according to the Factor (that depends on the Noise Value at that point):

(There’s a lot more to it, but you’ll learn about that later…the main take away is, that the Factor can be more than just a single number.)