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  • testing moderation effect after principal component analysis (PCA)

    Dear Statisticians,

    I have a variable A, variable B and variable C.

    Variable A is generated after using principal component analysis (PCA) with three proxy variables.These original proxy variables are discrete, arranging from 1 to 5. However, variable A is arranging from -3 to 2. Variable C and B is a positive and continuous.

    My purpose is to test whether variable B moderates the relationship between variable A and variable C.

    Code:
     reg C c.A c.B c.A#c.B, r
    The above model is simplified one which is convenient for discussion here.
    My question: is it allow to test the moderation effect of B on the relationship between A and C, after PCA? Thank you so much.

    Best regards,
    David
    Last edited by David Wong; 05 May 2017, 04:03.
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