references you may want to look at that address this:

Gorsuch, R. L.  (1990).  Common factor analysis versus component analysis:
Some well and little known facts.  Multivariate Behavioral Research, 25(1),
33-39.

Snook, S. C., & Gorsuch, R. L.  (1989).  Component analysis versus common
factor analysis: A Monte Carlo study.  Psychological Bulletin, 106(1),
148-154.

Velicer, W. F., & Jackson, D. N.  (1990).  Component analysis versus common
factor analysis: Some issues in selecting an appropriate procedure.
Multivariate Behavioral Research, 25(1), 1-28.

....for some the bottom line may be if your intention is to maximize
variance then PCA may be appropriate.....whereas if estimation of the common
factor variance + uniqueness is the primary objective, then factor analysis
may be warranted.  I have heard many opinions about this issue, and even
though it is emphasized that just relying on a generic default (e.g., PCA
with varimax) may belie the researcher's primary intention, more times than
not I have found the result and my ultimate interpretation to be very
similar regardless if I used PCA or factor analysis.......



Dale N. Glaser,Ph.D.
Senior Statistician
Pacific Science & Engineering Group
6310 Greenwich Drive; Suite 200
San Diego, CA 92122
Phone: (858) 535-1661
Fax: (858) 535-1665
e-mail: [EMAIL PROTECTED]

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED]]On Behalf Of Ken Reed
Sent: Wednesday, April 18, 2001 3:34 PM
To: [EMAIL PROTECTED]
Subject: PCA and factor analysis: when to use which


What is the basis for deciding when to use principal components analysis and
when to use factor analysis. Could anyone describe a problem that
illustrates the difference?



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