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Factor Analysis with Dichotomous and Continuous Variables

Posted: Tue Dec 15, 2015 3:35 am
by mbeckr18
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 :)

Re: Factor Analysis with Dichotomous and Continuous Variable

Posted: Tue Dec 15, 2015 9:49 am
by EViews Glenn
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

Posted: Wed Dec 16, 2015 1:39 am
by trubador
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.