Dear colleagues I know I can use principle component analysis (PCA) on categorical variables by first coding them as dummies. Multiple correspondent analysis(MCA) can also be used but you don't need to convert your categorical variables into dummies. Let me assume I will convert my variables into dummies and use PCA and ask the below question.
I have A latent variabel called Accessibility inferred by five likert questions (scale 1-7) and other questions below:
1 How much do you spend on NHIF
2 Mode of NHIF payment code 1 '"Out pocket" 2 "Sallary deduction" 3 "Insurance"
I want combine all these questions to generate a singel variable called Accessibility and I plan to generate a set of dummies from my categorical variables inorder to use pca.
suppose my dummies were a b c d e f g h for categorical variables and I do:
pca a b c d e f g h How much do you spend on NHIF
predict comp
Can I use comp as my Accessibility variable?I just want to rename it to Accessibility and use it.I know the predicted comp will be first principle component anyway.
The main question here is can I work with the first component as my Accessibility variable?
I plan to use the same Idea for affordability and quality variables which are inferred by other several questions.Please advice
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