# Factor Analysis: standardizing components

#### William1959

##### New Member
I hired a statistics guru to create a regression model to calculate sales quotas for our sales team based on historical sales data (DV) using several independent variables (gross profit, customer data, etc.). He did a factor analysis (PCA) and distilled several variables down to 3 components with loading factors. And then he disappeared without explaining to me how to calculate the components using the values for each variable and its loading factor. Jerk.

Here's data for one territory including the independent variables, their values and their loading factors.

HOSP************VALUE********FAC******V
FYTD_SLS*****$994,397*******.695*****b1 F05_GP*******$622,587*******.535*****b2
FYTD_GP******$400,579*******.660*****b3 F06_ANZGP****$438,729*******.660*****b4
Procedure*******7,524*******.892*****b6
TSURG04*******658,169*******.901*****b7
TORS************1,309*******.906*****b8
VMSLS*******2,488,974*******.887*****b9

REV
FYTD_SLS*****$994,397*******.641*****c1 F05_GP*******$622,587*******.692*****c2
FYTD_GP******$400,579*******.676*****c3 F06_ANZGP****$438,729*******.676*****c4
SB$12MO******$222,172*******.921*****c5
SB$1324MO****$244,902*******.945*****c6

TEN
TEN*****************0*******1.00*****d1

He gave me the formulas:

HOSP = (b1 * FYTD_SLS) + (b2 * F05_GP) + (b3 * FYTD_GP) + (b4 * F06_ANZGP) + (b5 * AVADMI) + (b6 * TLAP) + (b7 * TSURG04) + (b8 * TORS) + (b9 * VMSLS)

and

REV = (c1 * FYTD_SLS) + (c2 * F05_GP) + (c3 * FYTD_GP) + (c4 * F06_ANZGP) + (c5 * SB$12MO) + (c6 * SB$1324MO)

but they result in multimillion dollar numbers when they should result in fractions. He's telling me to "standardize the variables" but I haven't the foggiest how to do this. I have coefficients for the regression model and have no problem using them to calculate a result. But I can't calculate the components without knowing how to standardize them. I need some serious help. The "guru" has left me hanging and doesn't return emails or phone calls.

I'm running out of ideas on how to make these calcs.