Methodological study demonstrates factor loading estimation by minimizing off-diagonal residuals in correlation matrices, suggesting an efficient alternative to traditional factor extraction.
This paper is addressed to the classical problem of estimating factor loadings under the condition that the sum of squares of off-diagonal residuals be minimized. Communalities consistent with this criterion are produced as a by-product. The experimental work included several alternative algorithms before a highly efficient method was developed. The final procedure is illustrated with a numerical example. Some relationships of minres to principal-factor analysis and maximum-likelihood factor estimates are discussed, and several unresolved problems are pointed out.
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Harman et al. (1966) studied this question.
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