Connect the Dots: Factor Analysis

Factor extraction using PCA in Excel, R and Python

What you'll learn:

• Use Principal Components Analysis to Extract Factors
• Build Regression Models with Principal Components in Excel, R, Python

Factor analysis helps to cut through the clutter when you have a lot of correlated variables to explain a single effect.

This course will help youunderstand Factoranalysis and it’s link to linear regression. See how Principal Components Analysis is a cookie cutter technique to solve factor extraction and how itrelates toMachine learning .

What's covered?

Principal Components Analysis

• Understanding principal components
• Eigen values and Eigen vectors
• Eigenvaluedecomposition
• Using principal components for dimensionality reduction and exploratory factor analysis.

Implementing PCA in Excel, R and Python

• Apply PCA to explain the returns of a technology stock like Apple
• Find the principal components and use them to build a regression model