GATE (Graduate Aptitude Test in Engineering) Psychology Research Methods and Statistics-Factor Analysis Study Material (Page 4 of 5)

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# Factor Analysis: Principal Component Analysis (PCA)

## Principal Component Analysis (PCA)

### Mechanics of PCA

PCA is a procedure for identifying a smaller number of uncorrelated variables, called “principal components,” from a large set of data to explain the maximum amount of variance with the fewest number of principal components.

Principal components can be defined as a linear combination of optimally-weighted observed variables such that they explain maximum variance in the variables. “Linear combination” means that scores on a component are created by addi…

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# Factor Analysis: Process of FA

## Process of FA

The most widely used method in factor analysis is the Principal Factor Analysis (PFA) method. Both PCA and PFA are based on slightly different versions of the R correlation matrix (which includes the entire set of correlations among measured X variables) . In contrast with PCA, in PFA, we replace the 1՚s in the diagonal of the correlatio…

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