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Practical Predictive Analytics by Ralph Winters

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Where is PCA used?

Principal components are used heavily in the social sciences, marketing, and advertising industries. Related to PCA is factor analysis, in which rotating principal components results in creating latent variables. Latent variables attempt to describe the behavior of the data subjectively, as opposed to principal components, which are simply a linear combination of the original variables, and are more or less synthetic linear equations.

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