Exam 9: Factor Analysis

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In exploratory factor analysis, the goal is to:

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A factor correlation matrix is produced from an orthogonal rotation.

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Principal components analysis may be used as a variable reducing scheme for further analysis.

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An eigenvalue is defined as the amount of total variance explained by each factor, with the total amount of variability in the analysis equal to the number of original variables in the analysis.

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A final criterion for retaining components is the assessment of model fit.

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Oblique rotation results in factors being uncorrelated with each other.

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Varimax is the most commonly used oblique rotation procedure.

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When interpreting or naming components, one should pay particular attention to the size and direction of each loading.

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A bipolar factor refers to a component that contains both high positive and high negative loadings.

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Confirmatory factor analysis often used to:

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The underlying hypothetical (unobservable) variables in factor analysis are called factors.

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In principal components analysis, only unique variability is analyzed for each observed variable.

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The underlying, mathematical objective in principal components analysis is to obtain:

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Orthogonal rotation is a rotation of factors that results in factors being correlated with each other.

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It is recommended that the following two assumptions be evaluated and any necessary transformations be made to ensure the quality of data and improve the quality of the resulting factor or component solution:

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Factor analysis is used to describe the underlying structure that explains a set of variables.

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A scree plot is a graph of the magnitude of each eigenvalue (vertical axis) plotted against its ordinal numbers (horizontal axis).

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Principle components analysis analyzes covariance.

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In factor analysis, unique, shared, and error variability is analyzed for each observed variable.

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A general rule of thumb is to retain the factors that account for at least 70% of the total variability.

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