Determining the number of components from the matrix of partial correlations

@article{Velicer1976DeterminingTN,
title={Determining the number of components from the matrix of partial correlations},
author={W. Velicer},
journal={Psychometrika},
year={1976},
volume={41},
pages={321-327}
}

A common problem for both principal component analysis and image component analysis is determining how many components to retain. A number of solutions have been proposed, none of which is totally satisfactory. An alternative solution which employs a matrix of partial correlations is considered. No components are extracted after the average squared partial correlation reaches a minimum. This approach gives an exact stopping point, has a direct operational interpretation, and can be applied to… CONTINUE READING