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Thread: Factor analysis

  1. #1
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    Factor analysis

    If I run factor analysis, I can estimate the coefficients of the factors without knowing the factors. But I am puzzled about how to determine the independent variable if I don't know the factors. Does the factor analysis give me the Y variable as well the coefficients without knowing the factors?

  2. #2
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    you have say 20 variables which are all correltaed between them and you wish to create new uncorrelated variables but not 20, 4-5. You use factor analysis and this method groups the initilas variables in 4-5 new variables (the factors). You end up with 4-5 new variables which incorporate a lot of the information the initial 20 contained.

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