A Top Way of Determining the Number of Factors to Retain

Multiple Choice

A top way of determining the number of factors to retain is generating a random set of cases that have a similar number of items to your target data set. You then compare the magnitude of eigen values in your random data set to the magnitude of eigen values in your real data set to see at what point the random data has larger values than the real data set. This technique is called _____.

A) Modified eigen vector comparison
B) Parallel analysis
C) Goodness of fit analysis
D) Rotation analysis