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Principal Components
By
A. Subrahmanyam
Factor Analysis
Factor analyses are performed by examining
the pattern of correlations (or covariances)
between the observed measures.
Exploratory
It is exploratory when you do not have a pre -
defined idea of the structure or how many
dimensions are in a set of variables.
Confirmatory
It is confirmatory when you want to test specific
hypothesis about the structure or the number of
dimensions underlying a set of variables
Important terminology
Factor loading: interpreted as the Pearson
correlation between the variable and the factor
Extraction: the process by which the factors are
determined from a large set of variables
Communality:
The sum of the squared factor loadings for all
factors for a given variable (row) is the variance
in that variable accounted for by all the factors,
and this is called the communality.
The communality measures the percent of variance
in a given variable explained by all the factors
jointly.
Important terminology
Cont..
Eigenvalues: