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st: Factor analysis and dummy variables.
I know this question has been asked several times, but it's worth asking again.
Is it right to perform PCA analysis with dummy (0/1) variables?
I used to code :
factor radio tv frige bike moto car , pcf factor(5)
where radio tv ... are dummy (0/1),
but a colleague just told me I am wrong.
A MCA in his mind is better.
What is the best command in that case? Just to make sure.
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