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Re: st: factor analysis - interpreting the results, inclusion of dp variable
hello,
I am on the first stage of self-learning of factor analysis as well. maybe
this discussion would be a little bit out of STATA discussion. but it does not
hurt if i could share my basic understanding on this with you.
If your FA comes up with some meaningful factors based on the factor loadings,
just use those factors as independents and run a regression of the dependent
variable on them. so, you go back to look at those four factors to see if they
are substantively meaningful.
best,
georg wernicke <[email protected]>:
> hello stata list,
>
> i have a probably rather simple questions to which i cannot find good
> links in the net.
>
> i have quite a number of independent variables which have been
> identified as significant in the literature before (around 16). when i
> add all them in a regression, not one single variable is significant.
> i want to employ factor analysis to get a persimonious model.
>
> here are my questions:
> 1. do i include the dependent variable in the equation? (fac
> dependent independent1..... etc.)
> 2. the analysis is retains 4 factors and gives me a factor loading
> table which i rotated. now what do i do with the rotated table? i
> stored the 4 factors as new variables..do i simply ass them in the
> regression equation or do i only run a regression with these factors
> now?
> 3. or does the result of 4 retained factors tell me that my model
> should consist of 4 independent variables only?
>
> sorry, i know some of the questions are probably quite blunt...but
> still, i am lost on what to do with the results..
>
> thanks
>
> george
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