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cocoablazing | 8 years ago

You can, but why trash information that is present when you can leverage it with a different approach?

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MichailP|8 years ago

Like PCA? But that way you loose physical meaning of the predictors.

closed|7 years ago

PCA is a special case of factor analysis, so you are representing them as observations of a latent variable (which is often a narrative people use when explaining why two x variables are correlated)