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Suppose that the random variables Z?, Z? and Z3 have the sample correlation matrix: ...

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Suppose that the random variables Z?, Z? and Z3 have the sample correlation matrix: 1 1/5 1/4R= 1/5 1 1/3 1/4 1/3 1(i) Find the exact one-factor solution for the correlation matrix R and write down the factor loadings and specific variances for the one-factor model.(ii) Use the principal component method to calculate the factor loadings and specific variances of the two-factor solution for R.

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