Business Finance Homework Help

the problem should be done in R. If used Submit both R code and the solution.

Question

The 16PF contains 163 variables, which describes Cattell’s 16 Personality Factors Test. Description of the variables are located in word doc.

Note: 0 represents missing, NEEDS to be REMOVED

16PF Dataset

a) How many components are needed to account for 80% of the variance in the data? How is the number of components determined here?

b) Using the eigenvalue method, how many components would you choose? If you were using the knee of the scree plot, how many components would you choose?

c) i) Run a principal component analysis and visualize the top 10 variables of the first components. How many components did you choose? How did you choose the number of components?

ii) Interpret each component in a sentence or two? Write the equation of the first component using the component loadings.

d) Find the five-number summary of your component scores. What do the five-number summary of your scores tell you about the respondent’s personalities?

e) Conduct a factor analysis. How does it defer from the PCA in part d?