You might want to look into correspondence analysis, which has several variants of PCA designed for categorical data.

On Fri, 6 Mar 2009, Galanidis Alexandros wrote:

Hi all,

I' m trying to figure out if it is appropriate to do a PCA having only 
categorical data (not ordinal). I have only find the following quote:

One method to find such relationships is to select appropriate variables and
to view the data using a method like Principle Components Analysis (PCA) [4].
This approach gives us a clear picture of the data using KL-plot of the PCA.
However, the method is not settled for the data including categorical data.
[http://hp.vector.co.jp/authors/VA038807/personal/covEigGiniRep17.pdf]

but I'm still not sure if it WRONG to do so.

Since normally categorical data is taken to be binomial or Poisson distributed, the variance varies with the mean and least-squares (the basis of PCA) is then sub-optimal. Correspondence analysis takes that into account (at least to some extent).

Any opinion or reference would be very helpful

There is a basic introduction in MASS4, with references to more comprehensive accounts.

thanks

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