Factor Analysis - Factor Analysis (StudeerSnel)
8 important questions on Factor Analysis - Factor Analysis (StudeerSnel)
What is step 1? (requirements)
- Sample size: 4/5 per variable with a minimum of 50 variables.
- Measurement properties: interval or ratio
- Missing values: <10%
Difference between exploratory and confirmatory?
- Exploratory: find underlying structure, reveal interrelationships, generate hypothesis.
- Confirmatory: a prior idea, testing of hypothesis, testing relationships before factor analysis.
What is step 2? (preparations)
- Skewness and kurtosis: between -3 and 3
- Multicollinearity
- Correlation matrix: >0,3 or <-0,3
- Bartlett's test of sphericity: Significant when there are correlations between the variables
- Sample adequacy: Kaiser-Meyer Olkin >0,5 (higher is better)
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What is step 3? (determine method)
- Principal component analysis: data reduction: total variance considered
- Common factor analysis: data summarization: error variance considered
What is step 4? (determine number of factors)
- A priori determination: based on prior knowledge/theory
- Based on eigenvalues: factors with variance >1 included
- Based on the percentage of variance: should be account for at least 60%
- Based on scree plot: bending point of the plot
2, 3, and 4 are most often used
What is step 5? (rotate factors)
- Orthogonal (varimax): axes stay in right (90 degrees) angle. If correlation >-0,3 or <0,3
- Oblique (oblimin): axes change. If correlation <-0,3 or >0,3
What is step 6? (delete variables)
- Factor loading: the correlation between a variable and a factor, this is visible in the table of commonalities at extraction.
Rule --> delete correlations <0,3
2. Cross loader: variable that correlates with two or more factors.
Rule --> there is cross-loading when the differences between the highest factor loading of a variable on a factor, and the second-highest factor loading of a variable on a factor is smaller than <0,2. The variable with the highest cross load should be deleted.
What is step 7? (interpret factors)
- KMO and Bartlett's sufficient: KMO >0,5 & Bartlett's: significant
- Communalities: all above 0,2
- No cross loadings: Difference <0,2
- Explained variance: >60%
- Factor loadings: minimal 0,3 (350) or 0,4 (200)
The question on the page originate from the summary of the following study material:
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