Re: st: factor analysis - interpreting the results, inclusion of dp variable

 From tang5@purdue.edu To statalist@hsphsun2.harvard.edu Subject Re: st: factor analysis - interpreting the results, inclusion of dp variable Date Mon, 13 Aug 2007 22:02:53 -0400

```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.
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,

> hello stata list,
>
> i have a probably rather simple questions to which i cannot find good
>
> 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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```