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2009 Mar 25
2
pca vs. pfa: dimension reduction
...variables to be components (or indicators) of one latent factor. In order to reduce data (vars), I had the following idea: Calculate the factor underlying these three vars. Use the loadings and the original var values to construct an new (artificial) var: (B1 * X1) + (B2 * X2) + (B3 * X3) = ArtVar (brackets for readability). Use ArtVar for further analysis of the data, that is, as predictor etc. In my (I realise, elementary) psychological statistics readings I was taught to use pca for these problems. Referring to Venables & Ripley (2002, chapter 11), I applied "princomp&qu...