# Factor Analysis and PCA YouTube Lecture Handouts: Factor Analysis and PCA Analysis

Doorsteptutor material for competitive exams is prepared by world's top subject experts: get questions, notes, tests, video lectures and more- for all subjects of your exam.

Get video tutorial on: Examrace YouTube Channel

## 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 variableΥs 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 1.00Υs 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