Brief Introduction
Factor extraction using PCA in Excel, R and PythonDescription
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 you understand Factor analysis and it’s link to linear regression. See how Principal Components Analysis is a cookie cutter technique to solve factor extraction and how it relates to Machine learning .
What's covered?
Principal Components Analysis
- Understanding principal components
- Eigen values and Eigen vectors
- Eigenvalue decomposition
- 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
Requirements
- Requirements
- No statistics background required. Everything is built up from basic math
- The models are implemented in Excel, R and Python. Install these environments to follow along with the demos