Multi-Factor Analysis
The “Multi-Factor“ tab, found on the analysis tab on the right side of the application, allows you to use the same factors from the Factor Analysis tab in a multivariate regression. There are three modes:
- Manual: Choose factors manually from the drop-down list. When you have selected all the factors, click Calculate to see the regression results.
- N Best Factors: The application will use a stepwise regression. At each step it will select the factor that maximizes R2.
- Max Adjusted R2: Adding an additional factor will always increase R2. Adjusted R2 includes a penalty for each additional factor. This method will continue to add factors until adjusted R2 is maximized.
For N Best Factors and Max Adjusted R2, there is a “Correlation Cut-Off(%)” parameter. To avoid issues with multicollinearity, at each step, the application will exclude factors that are more correlated than this to the factors that have already been chosen.