The METHOD= option in the PROC HPPRINCOMP statement specifies which of the principal component extraction methods to use. METHOD=EIG requests the eigenvalue decomposition method, METHOD=NIPALS requests the nonlinear iterative partial least squares (NIPALS) method, and METHOD=ITERGS requests the iterative method based on Gram-Schmidt orthogonalization (ITERGS).
The OUTPUT statement creates a data set that contains observationwise statistics, which are computed after the model is fit. The OUTPUT statement causes the OUT= option in the PROC HPPRINCOMP statement to be ignored.