Principal Component Analysis-reconciliation

[sandeepmehtaiitd]

I think there is a bug in PCA calculation methodology. Multiplying loadings with indicator series doesnt give me the PC1 vector as shown in the excel file.

[EViews Glenn]

Before I take the time to work through the calculations, I just want to double check that if you are doing verification of components computed from a correlation matrix you'll need to scale and center your data appropriately.

http://forums.eviews.com/viewtopic.php? ... nts#p20975

Beyond that, you'll have to provide additional information as it's not entirely clear from the spreadsheet calculations what you are doing.