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st: -factor- with binary variables


From   Patricia Sourdin <patricia.sourdin@adelaide.edu.au>
To   statalist@hsphsun2.harvard.edu
Subject   st: -factor- with binary variables
Date   Sun, 28 Nov 2004 16:32:00 +1030

Hi Statalist
just a query on -factor-.
I am trying to construct an index where I have five variables which are binary
indicators.
I have read somewhere that it is not appropriate to use factor analysis if the
variables are binary.  Can anyone confirm, please?
Also, would -pca- be an alternative in this case?
As usual, any help would be appreciated.
Patricia
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