Factor Analysis

Principal Components Method

A Bose

BIMTECH

November 2009

A Bose (BIMTECH)

Factor Analysis

1/ 44

November 2009

1 / 44

What is Factor Analysis

Table of Contents

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4 5

What is Factor Analysis Description of an Ilustrative Problem Inputs for SPSS Descriptives inputs Extraction input Rotation input Request Analysis Export output PCA Analysis Check Appropriateness of Factor Analysis

Sample Size Requirement validation Presence of substantial correlations Sampling adequacy of individual variables Sampling adequacy for set of variables Bartlett test of sphericity

Number of factors to extract

Latent root criterion Percentage of variance criterion

Evaluating Communalities

Communality requiring variable removal

Identifying complex structure

A Bose (BIMTECH) Factor Analysis 2/ 44 November 2009 2 / 44

What is Factor Analysis

What is Factor Analysis Factor Analysis is a method of Data Reduction. It does this by seeking underlying unobservable (latent) variables or factors that are reflected in the observed variables (manifest variables or factors). The latent factors explain most of the variance observed in the much larger number of manifest variables Principal Component Analysis, which is a technique or method for Factor Analysis, transforms a set of correlated variables into a smaller set of uncorrelated variables called principal components. Factor analysis requires a large sample size, at least 300.

A Bose (BIMTECH)

Factor Analysis

3/ 44

November 2009

3 / 44

Description of an Ilustrative Problem

Table of Contents

1 2 3

4 5

What is Factor Analysis Description of an Ilustrative Problem Inputs for SPSS Descriptives inputs Extraction input Rotation input Request Analysis Export output PCA Analysis Check Appropriateness of Factor Analysis

Sample Size Requirement validation Presence of substantial correlations Sampling adequacy of individual variables Sampling adequacy for set of variables...