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A snapshot of the summary  Multivariate Data Analysis

1 College Factor Analysis

How is Factor analysis an Interdependence technique?Factor analysis is an Interdependence technique in that an entire set of interdependent relationships is examined without making the distinction between dependent and independent variable.

In what circumstances is factor analysis used?
 To identify underlying demensions, or factors, that explain the correlations among a set of variables.
 To indentify a new, smaller, set of uncorrelated variables to replace the origian set of correlated variables in subsequent multivariate analysis (E.G. Regression or ancova)
 To identify underlying demensions, or factors, that explain the correlations among a set of variables.

What are the two forms of factor analysis?Explaratory and confirmatory

What is meant with exploratory factor analysis?
 Researcher intends to find an underlying structure
 researcher has assumptions that superior factors cause correlations between variables
 researcher intends to reveal interrelationships
 generation of hypotheses
 Researcher intends to find an underlying structure

What is meant with confirmatory factor analysis?
 Researcher has a priori ideas of the underlying factors that derive from theory
 Researcher identifies relationships between variables and factors before conducting the factor analysis
 Testing hypotheses
 special case of structural equation models
 Researcher has a priori ideas of the underlying factors that derive from theory

What is meant with Data Matrix XContains the characteristics of objects that derived from questioning prersons

What is meant with standard data matrix ZZ contains the standardized characteristics of objects (Standradized data always have a mean of 0 and a standard deviation of 1)

What is meant with rotated factor loadings A*?Contains correlations between factors and variables after rotation of the coordinate plane

What are the steps of conducting Factor analysis?
 Problem formulation
 construction of the correlation matrix
 selecting the method of factor analysis
 determination of number of factors
 rotation of factors
 interpretation of factors
 Calculation of factor scores
 or Selection of surrogate variables
 Creation of summated scores
 .
 Determination of Model Fit
 Problem formulation

What is meant with formulating the problem in factor analysis?
 The objectives of factor analysis should be identified.
 data summarization?
 Data reduction
 The variables to be included in the factor analysis should be specified based on past research, theory, and judgment of the researcher. It is important that the variables be appropriately measured on an interval or ratio scale.
 An appropriate sample size should be used. As a rough guideline, there should be at least four or five times as many observations (Sample size) as there are variables
 The objectives of factor analysis should be identified.
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