Factor analysis model is an extension of the principal component analysis, it also used the idea of dimensionality reduction, by the dependence of the correlation matrix of original variables of to some of the complex relationship between the variables is reduced to a few integrated factors, a multivariate statistical method. The total wages of employees in various regions is one of the important indicators of economic development, he generally contains 19 variables representing different industries. The purpose of this paper is to further reduce the number of relational variables (indicators) by factor analysis.
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