Hi All,
I am faced with a modeling scenario where, there are too many variables (almost 1000) and too few observations (approx 700). I am trying to reduce the number variable to something around 100-150 before I go into modeling. I thought of using Principle Component Analysis & Factor Analysis to reduce variables but all these techniques require the Observations to Variables ratio to be at least 5, which I don't have. Is there any other technique available to reduce the variables? My independent variables are mostly demographic & household related variables hence would be highly correlated.
Thanks in advance,
Indrajit
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