Hello,
I am trying to conduct a factor analysis with dichtomous and continuous variables to reduce the total number of variables. I understood that this is possible with R but can you also perform this analysis using Eviews?
I would appreciate your help very much! Thank you
Factor Analysis with Dichotomous and Continuous Variables
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Re: Factor Analysis with Dichotomous and Continuous Variable
Not sure what exactly R is doing, but you can perform factor analysis in EViews with any variables for which you can compute a correlation/covariance matrix.
Re: Factor Analysis with Dichotomous and Continuous Variable
Correlations among nonmetric variables are already problematic. So, mixing metric variables with nonmetric variables in Factor analysis is not recommended if you want to avoid garbage in/ garbage out.
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