# Tutorial - Factor Analysis - Teradata Warehouse Miner

## Teradata Warehouse Miner User Guide - Volume 3Analytic Functions

Product
Release Number
5.4.5
Published
February 2018
Language
English (United States)
Last Update
2018-05-04
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B035-2302
Product Category
Software

In this example, principal components analysis is performed on a correlation matrix for 21 numeric variables. This reduces the variables to 7 factors using a minimum eigenvalue of 1. The Scree Plot supports limiting the number of factors to 7 by showing how the eigenvalues (and thus the explained variance) level off at 7 or above.

1. Parameterize a Factor Analysis as follows:
• Available Matrices — Customer_Analysis_Matrix
• Selected Variables
• income
• age
• years_with_bank
• nbr_children
• female
• single
• married
• separated
• ccacct
• ckacct
• svacct
• avg_cc_bal
• avg_ck_bal
• avg_sv_bal
• avg_cc_tran_amt
• avg_cc_tran_cnt
• avg_ck_tran_amt
• avg_ck_tran_cnt
• avg_sv_tran_amt
• avg_sv_tran_cnt
• cc_rev
• Analysis Method — Principal Components
• Matrix Type — Correlation
• Minimum Eigenvalue — 1
• Invert signs if majority of matrix values are negative — Enabled
• Rotation Options — None
• Factor Variables — Enabled
• Threshold Percent — 1
• Long Report — Not enabled
2. Run the analysis.
3. Click Results when it completes.

For this example, the Factor analysis generated the following pages. A single click on each page name populates the Results page with the item.

 Number of Variables 21 Minimum Eigenvalue 1 Number of Factors 7 Matrix Type Correlation Rotation None
 6/20/2004 1:55:02 PM Getting Matrix 6/20/2004 1:55:02 PM Principal Components Analysis Running...x 6/20/2004 1:55:02 PM Creating Report
 Factor 1 4.292 Factor 2 2.497 Factor 3 1.844 Factor 4 1.598 Factor 5 1.446 Factor 6 1.254 Factor 7 1.041 (Factor 8) 0.971 (Factor 9) 0.926 (Factor 10) 0.871 (Factor 11) 0.741 (Factor 12) 0.693 (Factor 13) 0.601 (Factor 14) 0.504 (Factor 15) 0.437 (Factor 16) 0.347 (Factor 17) 0.34 (Factor 18) 0.253 (Factor 19) 0.151 (Factor 20) 0.123 (Factor 21) 0.0701
Variable Name Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7
age 0.2876 -0.4711 0.1979 0.2615 0.2975 0.3233 -0.2463
avg_cc_bal -0.7621 0.0131 0.1628 -0.1438 0.3508 -0.1550 -0.0300
avg_cc_tran_amt 0.3716 -0.0318 -0.1360 0.0543 -0.1975 0.0100 0.0971
avg_cc_tran_cnt 0.4704 0.0873 -0.4312 0.5592 -0.0241 0.0133 0.0782
avg_ck_bal 0.5778 0.0527 -0.0981 -0.4598 0.0735 -0.0123 -0.0542
avg_ck_tran_amt 0.7698 0.0386 -0.0929 -0.4535 0.2489 0.0585 0.0190
avg_ck_tran_cnt 0.3127 0.1180 -0.1619 -0.1114 0.5435 0.1845 0.0884
avg_sv_bal 0.3785 0.3084 0.4893 0.0186 -0.0768 -0.0630 0.0517
avg_sv_tran_amt 0.4800 0.4351 0.5966 0.1456 -0.0155 0.0272 0.1281
avg_sv_tran_cnt 0.2042 0.3873 0.4931 0.1144 0.2420 0.0884 -0.0646
cc_rev 0.8377 -0.0624 -0.1534 0.0691 -0.3800 0.1036 0.0081
ccacct 0.2025 0.5213 0.4007 0.3021 0.0499 -0.1988 0.1733
ckacct 0.4007 0.1496 -0.4215 0.5497 0.1127 -0.0818 -0.0086
female -0.0209 0.1165 -0.1357 0.3119 0.1887 -0.2228 -0.3438
income 0.6992 -0.2888 0.1353 -0.2987 -0.2684 0.0733 0.0310
married 0.0595 -0.7702 0.2674 0.2434 0.1945 0.0873 0.2768
nbr_children 0.2560 -0.4477 0.1238 -0.0895 -0.0739 -0.5642 0.0898
separated 0.3030 0.0692 0.0545 -0.0666 -0.0796 -0.5089 -0.6425
single -0.2902 0.7648 -0.3004 -0.2010 -0.2120 0.2527 0.0360
svacct 0.4365 0.1616 -0.2592 -0.1705 0.6336 -0.1071 0.0318
years_with_bank 0.0362 -0.0966 0.2120 0.0543 -0.0668 0.5507 -0.5299