April 2019
Beginner to intermediate
1240 pages
45h 43m
English
Content preview from Data Science for Business and Decision Making
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Chapter 12
Principal Component Factor Analysis
Abstract
This chapter discusses the circumstances in which the principal component factor analysis technique can be used. Several factor analysis concepts, calculations, and interpretations are presented: the concept of factor; an evaluation of the factor analysis’s overall adequacy through the KMO statistic and Bartlett’s test of sphericity; concepts of eigenvalues and eigenvectors in Pearson’s correlation matrices; the calculation and interpretation of factor scores, and, from these, the definition of factors; the calculation and interpretation of factor loadings and communalities; the construction of loading plots; concepts of factor rotation and preparation of the Varimax orthogonal rotation; ...
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