Which of the following sentences regarding the similarities of factor analysis and PCA is false?
A)Both factor analysis and PCA are linear models in which loadings are used as weights.
B)Unlike PCA, factor analysis contains an error term.
C)Both PCA and exploratory factor analysis take advantage of 'rotation'.
D)In both PCA and factor analysis we predict components from measured variables.

Question

Quizplus · Accepted Answer

In PCA, we do not predict components from measured variables; instead, we transform the original variables into a new set of uncorrelated variables (principal components). Factor analysis, however, does involve predicting latent factors from measured variables.

Which of the Following Sentences Regarding the Similarities of Factor