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Mastering Scientific Computing with R by Radia M. Johnson, Paul Gerrard

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Exploratory factor analysis and reflective constructs

The PCA method that we have discussed so far models all of the variance of the variables to which it is applied. An alternative approach, which is often confused with PCA, is to model only the common variance: an approach called factor analysis (FA). In this chapter, we will discuss exploratory factor analysis (EFA).

Familiarizing yourself with the basic terms

The following are the basic terminologies that you need to be aware of:

  • Latent trait or common factor: This is an unobserved variable that explains some or all of the variance in observed variables.
  • Path coefficient: This is the correlation coefficient between a latent trait and an observed variable.
  • Communality: This refers to the square ...

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