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Exploratory Factor Analysis

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irna kartinakh
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25 views14 pages

Exploratory Factor Analysis

Uploaded by

irna kartinakh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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• Exploratory factor analysis is a statistical

technique that is used to reduce data to a smaller set


of summary variables and to explore the underlying
theoretical structure of the phenomena. It is used to
identify the structure of the relationship between the
variable and the respondent. Exploratory factor
Exploratory analysis can be performed by using the following
two methods:
Factor • R-type factor analysis: When factors are calculated
Analysis from the correlation matrix, then it is called R-type
factor analysis.
• Q-type factor analysis: When factors are calculated
from the individual respondent, then it said to be Q-
type factor analysis.
Driving factor:
• There are two methods for driving factor, these two
methods are as follows:
1. Principle component factor analysis method: This
method is used when we need to drive the minimum
number of factors and explain the maximum portion of
variance in the original variable.
2. Common factor analysis: This method is used when the
researchers do not know the nature of the factor to be
extracted and the common error variance.
Selection of factors
to be extracted:
• Theory is the first criteria to determine the number
of factors to be extracted. From theory, we know
that the number of factors extracted does make
sense. Most researchers use the Eigenvalue
criteria for the number of factors to be extracted.
Value of the percentage and variance explained
method is also used for exploratory factor analysis.
We can use the scree test criteria for the selection of
factors. In this method, Eigenvalue is plotted on a
graph and factors are selected.
Orthogonal rotation:
• In this method, axis are maintained at 90 degrees, thus the factors
are uncorrelated to each other. In orthogonal rotation, the
following three methods are available based on the rotation:
• A. QUARTIMAX: Rows are simplified so that the variable
should be loaded on a single factor.
• B. VARIMAX: Used to simplify the column of the factor matrix
so that the factor extracts are clearly associated and there should
be some separation among the variables.
• C. EQUIMAX: The combination of the above two methods. This
method simplifies row and column at a single time.
Criteria for Practical and
Statistical Significance of Factor
Loadings:

• Factor loading can be classified based on their


magnitude:
• Greater than + .30 — minimum consideration level
+ .40 — more important
+ .50 — practically significant
• Power and significance level: The researcher can
determine the statistical power and significance level. For
instance, in order to achieve a factor loading of .55 with a
power of .80, a sample of 100 is needed.
Factor analysis and
SPSS:
• Factor analysis can be performed in SPSS by clicking on “analysis” from menu, and then
selecting “factor” from the data reduction option.
• Assumptions:
1. Variables used should be metric. Dummy variables can also be considered, but only in special
cases.
2. Sample size: Sample size should be more than 200. In some cases, sample size may be
considered for 5 observations per variable.
3. Homogeneous sample: A sample should be homogenous. Violation of this assumption
increases the sample size as the number of variables increases. Reliability analysis is
conducted to check the homogeneity between variables.
4. In exploratory factor analysis, multivariate normality is not required.
5. Correlation: At least 0.30 correlations are required between the research variables.
6. There should be no outliers in the data.
Hand on session
• Please open the database “Data
Demystified YouTube Survey”
• Analyse =====dimension
reduction======factor analysis
Check the followings
KMO>0.7 means
enough shared variance
to conduct factor
analysis
p value< 0.05 means
there are some
relationship between
the variables
Anti-image

The anti-image correlation matrix contains the


negatives of the partial correlation coefficients,
and the anti-image covariance matrix contains the
negatives of the partial covariances.
In a good factor model, most of the off-diagonal
elements will be small.
The measure of sampling adequacy for a variable is
displayed on the diagonal of the anti-image
correlation matrix.
MSA>0.5 is good
Use EI and
variance
explained
rule
Elbow rule

Scree plot
Correlation between manually selected
and factor generated
Z scores

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