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Study of the Relationship between Dependent and Independent Variable Groups by Using Canonical Correlation Analysis with Application

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  • Thanoon Thanoon
  • Robiah Adnan
  • Seyed Saffari

Abstract

Canonical correlation analysis is used to study the relationship between two groups of variables (dependent and independent). Since each group represents the linear combination to a number of variables, canonical correlation analysis measures the relationship between these variables that maximally correlate with linear combinations of another subset of variables. Statistical analysis involves canonical correlation between two groups of variables, canonical variates, standard canonical variates, canonical factor loadings, canonical cross factor loadings for both groups. Test of significance of canonical correlation using Wilk's Lambda showed that the first and second canonical correlation were significant and the third and fourth canonical correlation were insignificant. This method is illustrated by using a real data set. Results obtained by using SPSS program.

Suggested Citation

  • Thanoon Thanoon & Robiah Adnan & Seyed Saffari, 2015. "Study of the Relationship between Dependent and Independent Variable Groups by Using Canonical Correlation Analysis with Application," Modern Applied Science, Canadian Center of Science and Education, vol. 9(8), pages 1-72, August.
    • Handle: RePEc:ibn:masjnl:v:9:y:2015:i:8:p:72
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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