Blognya Adi Asriadi…

Factor model, a statistical model that can be used for analizing interrelationship of variables. The purpose of factor model is inventing new variables as small number of factor than before. This thesis present parameters expectation of factor model using maximum likelihood methods. Maximalize likelihood function usually using iteration methods, EM (Expectation Maximization) algorithm. The result of expectation with EM (Expectation Maximization) algorithm are factor model parameters, loading factor and unique factor

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