i have 15 variables and there are three groups of 5 variables each represnting some Psychological consruct. I have extracted three factors representing each of these three groups according to the loadings of variables onto factors. Now i want to use these factors in regressio n analysis but i do not know the pros and cons (advamtages and disadvantages) of using factors in regression analysis.
Can anybody suggest me how to proceed. My thnking is as follows:
As factors are uncorrelated so these will remove the multicollinearity in regression analysis.