Dear all,
please help me with this question:
I have done principal component analysis in Stata and at the end pressed predict the variable. The prediction numbers appear, my question is: do i use these numbers as my index? If yes, then If some of them are negative, what should I do, or how to assign the value of the index to negative numbers?
Thanks in advance
Azmain Yakin Srizon
Hello there. Here is the documentation of Stata: https://www.stata.com/manuals13/rpredict.pdf
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Tafadzwa Maseko
Remember the scores of that component are standardized to mean zero and standard deviation of 1. They are like Z scores. You can reverse the process to get the scores from z-scores ( x= µ + Zσ ).
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Suraj Bhagat
you can but you need to be scientifically logical to convince the reviewers
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