Factor Analysis and PCA YouTube Lecture Handouts: Factor Analysis and PCA Analysis
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Factor Analysis
- Reduce large number of variables into fewer number of factors
- Co-variation is due to latent variable that exert casual influence on observed variables
- Communalities β each variableΥs variance that can be explained by factors
Principal Component Analysis
- Variable reduction process β smaller number of components that account for most variance in set of observed variables
- Explain maximum variance with fewest number of principal components
| PCA | Factor Analysis |
| Observed variance is analyzed | Shared variance is analyzed |
| 1.00Υs are put in diagonal β all variance in variables | Communalities in diagonal β only variance shared with other variables are included β exclude error variance and variance unique to each variable |
| Analyze variance | Analyze covariance |
β Manishika