1.0 .63 45 P = .63 1.0 .35 .45 .35 1.0 for the p = 3 standardized random variables Z,, Z2, and Z3 can be generated by the m = 1 factor model Z1 = .9F1 + 81 Z2 = .7F, + 82 Z3 = .5F1 + 63 where Var ( F1 ) = 1, Cov (E, F1) = 0, and .19 0 0 Y = Cov (E) = 0 .51 0 0 0 .759.3. The eigenvalues and eigen vectors of the correlation matrix p in Exercise 9.1 are Aj = 1.96, e; = [-625, .593, .507] A2 = .68, e2 = [-219, -.491, .843] A3 = .36, es = [.749, -.638, -.177] (a) Assuming an m = 1 factor model, calculate the loading matrix L and matrix of specific variances I using the principal component solution method. Compare the results with those in Exercise 9.1. (b) What proportion of the total population variance is explained by the first common factor