LYCEUM NORTHWESTERN UNIVERSITY

Institute of Graduates and Professional Studies

Tapuac, Dagupan City, Pangasinan Philippines

Factorial Analysis

(Activity)

Name: LICHELLE C. ALCANTARA

Program: MASTER’S IN EDUCATION MAJOR IN MATHEMATICS

Prof: Engr. Felix Manaoat

 1. Principal Component Analysis (PCA)
2. Factor Analysis (FA)
3. Independent Component Analysis (ICA)
4. Maximum Likelihood Factor Analysis (MLFA)
5. Exploratory Factor Analysis (EFA)
6. Confirmatory Factor Analysis (CFA)

Let's discuss each method in detail:

1. Principal Component Analysis (PCA)

PCA is a technique used to emphasize variation and bring out strong patterns in a data set. It's
often used to make data easy to explore and visualize. The main steps in PCA are:

 Standardizing the data.

 Computing the covariance matrix.
 Calculating the eigenvalues and eigenvectors.
 Sorting eigenvalues and their corresponding eigenvectors.
 Selecting a subset of the eigenvectors (principal components).

PCA transforms the original variables into a new set of uncorrelated variables (principal
components) ordered by the amount of original variance they retain.

2. Factor Analysis (FA)

FA is used to identify underlying relationships between variables by assuming that the

observed variables are influenced by some latent variables (factors). The main steps in FA
are:

 Formulating the factor model.

 Estimating the factor loadings and unique variances.
 Rotating the factor loadings to achieve a more interpretable structure.

Unlike PCA, FA assumes that the observed variables are influenced by some underlying
factors plus some error term.

3. Independent Component Analysis (ICA)

ICA is used to separate a multivariate signal into additive, independent non-Gaussian signals.
It is commonly applied in fields like signal processing. ICA assumes that the observed
variables are linear combinations of some unknown independent sources. The main steps in
ICA are:

 Centering and whitening the data.

 Maximizing statistical independence among the components.

4. Maximum Likelihood Factor Analysis (MLFA)

MLFA estimates the factors and their loadings by maximizing the likelihood function under
the assumption that the data follows a multivariate normal distribution. It involves:
  Specifying a likelihood function based on the factor model.
 Estimating the parameters (factor loadings and unique variances) by maximizing the
likelihood function.

5. Exploratory Factor Analysis (EFA)

EFA is used to uncover the underlying structure of a relatively large set of variables. It is
exploratory in nature because it does not impose a predefined structure on the outcome. The
main steps in EFA are:

 Determining the number of factors.

 Estimating the factor loadings.
 Rotating the factor loadings to achieve a simpler and more interpretable structure.

6. Confirmatory Factor Analysis (CFA)

CFA is used to test whether a hypothesized factor structure fits the observed data. It is
confirmatory because it requires the researcher to specify the number of factors and which
variables load on which factors a priori. The main steps in CFA are:

 Specifying the factor model.

 Estimating the model parameters.
 Assessing the model fit using various fit indices.

Each of these methods has its own assumptions, strengths, and limitations, and the choice of
method depends on the specific goals and characteristics of the data set being analyzed.

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