Factor extraction using PCA in Excel, R and Python
What you'll learn:
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
