options ls=78;
title "Factor Analysis - Principal Component Method - Places Rated";

 /* After reading in the places data, the (base 10) log transformations are taken.
  * This is an optional step and not required for the factor analysis.
  */

data places;
  infile "D:\Statistics\STAT 505\data\places.csv" firstobs=2 delimiter=',';
  input climate housing health crime trans educate arts recreate econ id;
  climate=log10(climate);
  housing=log10(housing);
  health=log10(health);
  crime=log10(crime);
  trans=log10(trans);
  educate=log10(educate);
  arts=log10(arts);
  recreate=log10(recreate);
  econ=log10(econ);
  run;

 /* Options for the factor statement are
  * method= specifes the estimation method from principal components
  * nfactors= specifies the number of factors to work with
  * rotate=varimax specifies the rotation type varimax
  * simple outputs several statistics, such as means and std deviations
  * scree displays a scree plot of the eigenvalues
  * ev outputs the eigenvectors
  * preplot displays a scatterplot of the factor pattern before rotation
  */

proc factor data=places method=principal nfactors=3 rotate=varimax simple scree ev preplot
     plot residuals;
  var climate housing health crime trans educate arts recreate econ;
  run;