Question: (b) (i) Describe factor analysis as a multivariate method, emphasizing on its purpose, its assumptions, and its similarities and differences with principal component analysis

(b) (i) Describe factor analysis as a multivariate method, emphasizing on its

(b) (i) Describe factor analysis as a multivariate method, emphasizing on its purpose, its assumptions, and its similarities and differences with principal component analysis (ii) Consider two models model A: Y = 0.4F+0.4F2+ Y= -0.3F +0.3F+ Y3=0.5F -0.5F + 3 model B: 2 Y =OF+F+ 2 Y=0.32F-0F+ 2 F + 3 Y30F Explain how the factors are related to the observed variables in each model. Confirm that they both have the same theoretical var-cov matrix even though different loadings hence find the tota communality for the observed variables

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