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In this paper we compare and contrast the objectives of principal component analysis and exploratory factor analysis. This is done through consideration of nine examples. Basic theory is presented in appendices. As well as covering the standard material, we also describe a number of recent developments. As an alternative to factor analysis, it is pointed out that in some cases it may be useful to rotate certain principal components if and when that is appropriate.
Joliffe et al. (1992) studied this question.