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Results tagged with factor-analysis
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user 11907
Factor analysis is a dimensionality reduction latent variable technique which replaces inter-correlating variables with a smaller number of continuous latent variables called factors. The factors are believed to be responsible for the inter-correlations. [For confirmatory factor analysis, please use the tag 'confirmatory-factor'. Also, the term "factor" of factor analysis should not be confused with "factor" as categorical predictor of a regression/ANOVA.]
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How can I choose the 10 variables that explain the most variation in a wealth index?
Generally the way this would be done is by performing a linear regression of the wealth index over the 32 variables. The 10 coefficients with the highest magnitude (absolute value) should be the 10 t …
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