I would like to construct principal components from 30+ financial ratios for a predictive model. I would then use logistic regression and support vector machines for the predictions, conditioned on the principal components. I have panel data with T
Principal component analysis (PCA) can be used to analyze panel data. However, the data must be balanced for PCA to be used.
Thank you for your response, Chuck.
Chuck A Arize Sorry to bother you. I am a senior student. What do you mean by 'balanced data'. Thank you for your patient explanation!
Xiang, I believe he means that T must be the same for each cross-section.
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