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Exploratory Factor Analysis

The presentation discusses in detail different concepts pertinent to Exploratory Factor Analysis. Following are the contents of the presentation Concept of Exploratory Factor Analysis Assumptions of Exploratory Factor Analysis Rotation methods in Exploratory Factor Analysis, Running Exploratory Factor Analysis Interpreting Exploratory Factor Analysis Reporting of Exploratory Factor Analysis Video Link to the Tutorial: https://youtu.be/gb39WWR26bk

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Fawad Latif
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106 views

Exploratory Factor Analysis

The presentation discusses in detail different concepts pertinent to Exploratory Factor Analysis. Following are the contents of the presentation Concept of Exploratory Factor Analysis Assumptions of Exploratory Factor Analysis Rotation methods in Exploratory Factor Analysis, Running Exploratory Factor Analysis Interpreting Exploratory Factor Analysis Reporting of Exploratory Factor Analysis Video Link to the Tutorial: https://youtu.be/gb39WWR26bk

Uploaded by

Fawad Latif
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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EXPLORATO CONCEPT,
RY FACTOR ASSUMPTIONS,
ROTATION
ANALYSIS METHODS,
FOR SCALE RUNNING,
DEVELOPME INTERPRETING,
AND REPORTING
NT
WATCH VIDEO TUTORIAL
WHAT IS FACTOR ANALYSIS
1. Factor analysis is used as a data reduction technique.
2. Factor analysis takes a large number of variables and
reduces or summarizes it to represent them in different
factors or components.
3. Factor analysis is a method for investigating whether a
number of variables of interest are linearly related to a
smaller number of unobservable factors. This is done by
grouping variables based on inter-correlations among set
of variables.
WHAT IS FACTOR ANALYSIS
1. A common usage of factor analysis is in developing objective instruments
for measuring constructs which are not directly observable in real life.
2. Factor Analysis technique mainly examines the systematic
interdependence among set of observed variables, and the researcher is
mainly focused on determining the base of commonality among these
variables.
3. Factor analysis has been extensively used in research for data reduction
and summarization. The main objective of factor analysis is to summarize
the information contained in a large number of variables into a few small
numbers of factors.
4. How well do the items go well together. Incase we are building a new
Scale.
EFA VS CFA
 When applied to a research problem, these methods can be used to either
confirm a priori established theories or identify data patterns and relationships.
 Specifically, they are confirmatory when testing the hypotheses of existing
theories and concepts and exploratory when they search for latent patterns in
the data in case there is no or only little prior knowledge on how the variables
are related.
 When exploratory factor analysis is applied to a data set, the method searches
for relationships (variables with high correlation are grouped together)
between the variables in an effort to reduce a large number of variables to a
smaller set of composite factors (i.e., combinations of variables). The final set
of composite factors is a result of exploring relationships in the data and
reporting the relationships that are found (if any).
BASIC TERMINOLOGIES IN FACTOR ANALYSIS
The following is the list of some basic terms frequently used in the factor analysis
 Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy: The Kaiser-Meyer-Olkin
(KMO) measure of sampling adequacy is an index used to examine the appropriateness of
factor analysis. This statistics shows the proportion of variance, for variables included in the
study is the common variance. A high value of statistic (from 0.5 - 1) indicates the
appropriateness of the factor analysis for the data in hand, whereas a low value of statistic
(below 0.5) indicates the inappropriateness of the factor analysis.
 Bartlett’s test of Sphericity: Bartlett's test of sphericity is a test statistic used to examine the
hypothesis that the variables are uncorrelated in the population. In other words, the population
correlation matrix is an identity matrix; each variable correlates perfectly with itself (r = 1) but
has no correlation with the other variables (r = 0).
 A value less than 0.05 indicate that the data in hand do not produce an identity matrix as with
an identify matrix, factor analysis is meaningless. This means that there exists a significant
relationship among the variables. A significant result (Sig. < 0.05) indicates matrix is not an
identity matrix; i.e., the variables do relate to one another enough to run a meaningful EFA.
BASIC TERMINOLOGIES IN FACTOR ANALYSIS
 Communality: Communality is the amount of variance a variable shares
with all the other variables being considered. This is also the proportion of
variance explained by the common factors. Small values indicate variables
that do not fit well with the factor solution, and should possibly be dropped
from the analysis. Normally values Less than .60 are removed.
Uniqueness: Gives the proportion of the common variance of the
variable not associated with the factors. Uniqueness is equal to 1 –
communality. So Communality = 1-Uniqueness
 Percentage of Variance: It gives the percentage of variance that can be
attributed to each specific factor relative to the total variance in all the
factors.
BASIC TERMINOLOGIES IN FACTOR ANALYSIS
The following is the list of some basic terms frequently used in the factor analysis
 Eigen Value: The eigenvalue represents the total variance explained by
each factor. Factors having eigenvalues over one (1) are selected for further
study.
 Scree Plot: It is a plot of eigenvalues and factor number according to the
order of extraction. This plot is used to determine the optimal number of
factors to be retained in the final solution.
 Factor Loadings: Also referred to as factor-variable correlation. Factor
loadings are simple correlations between the variables and the factors.
 Factor Matrix: A factor matrix contains the factor loadings of all the
variables on all the factors extracted.
ROTATION METHOD
Makes the Loading Patterns Easy to Understand
 Varimax (most common)

minimizes number of variables with extreme loadings (high or low) on a factor. Minimizes the
correlation between factors. Makes it possible to identify a variable with a factor. Components are always
orthogonal—each component explains non-redundant information
 Quartimax

minimizes the number of factors needed to explain each variable. Tends to generate a general
factor on which most variables load with medium to high values, not very helpful for research
 Direct oblimin (DO)

factors are allowed to be correlated


 Promax (Use this one if you're not sure)

computationally faster than DO. Used for large datasets


 Simplimax

Generation of Simple Structure


ROTATIONS
 Rotations that allow for correlation are called oblique
rotations; rotations that assume the factors are not
correlated are called orthogonal rotations.
 Varimax returns factors that are orthogonal; Oblimin
allows the factors to not be orthogonal.
STEPS TO RUN FACTOR ANALYSIS
IN SPSS
 Choose Analyze → Dimension Reduction → Factor
 We will use JAMOVI

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