# Factor Analysis SPSS2, Seminar 3 (Friday week 4 or Tuesday week 5) Aims of this week’s seminar: This week we’ll

be looking at factor analysis. This type of analysis is used to reduce a larger number of manifest variables down to a smaller number of latent variables. In this week’s seminar there are three examples for you to work through. The data files are, as usual, located on the SPSS2 intranet site, to be found at http://www.lifesci.sussex.ac.uk/teaching/index.php?id=909C8. The files are called “factor analysis ex 1”, “factor analysis ex 2” and “factor analysis ex 3”. One note of warning if you’re printing: factor analysis can produce loads of output. Exercise one This set of data gives the responses of children to a number of questions asking them about school. We will run a factor analysis on this data to see if these variables can be reduced to reveal a number of latent variables. To run this analysis go to Analyse > Data reduction > Factor and the following dialog box will open. Select all of the variables and move them across to the “Variables” box. Next you need to select some of the options. First click on “Descriptives” and select the options shown. Click “Continue” to get back to the main factor analysis dialog box. Next click on “Extraction”. The options that you select tell SPSS how to extract the factors from the variable you have entered into the analysis. Most of the options in this box should be there by default. Make sure that the selected method is “Principle components” and that you have selected the “Scree plot” option. Click “Continue” to get back to the main factor analysis dialog box. Next click on “Rotation”. The extraction of factors can be improved upon by rotation, and here you tell SPSS which method of rotation to use (for more details about methods of rotation see Andy Field’s book, pp. 438-441, 449-451). In this box select the “Varimax” method of rotation and select the “Loading plots” option. Click “Continue” to get back to the main factor analysis dialog box. Next click on “Scores”. By selecting options in this box SPSS will save new variables in the data view that represent each participant’s performance for each of the extracted factors or new latent variables. This is useful if you want to run any further analysis on these factor scores. Select “Save as variables” using the “Anderson-Rubin” method. Click

Dr Sam Knowles (skzk20@susx.ac.uk)

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“Continue” to get back to the main factor analysis dialog box. Finally click on “Options”. Your first option is based on how to deal with missing data. The best method to select is to “Exclude cases pairwise”. Second you can select options to make your final factor analysis solution easier to understand and interpret. Select “Sorted by size” and to “Suppress absolute values”. Make sure you change this value to 0.40. Click on “Continue” to get back to the factor analysis dialog box and then “OK” to get the output from the analysis. As mentioned earlier, you get lots of output from a factor analysis. Not all of the output will be mentioned here, just the most important sections for the interpretation of the analysis. Some sections will be referred to but not reproduced in the handout. First you get a descriptive statistics table (not shown here). This tells you about participants’ performance on each of these variables. Next you get a massive table that gives you the correlation coefficients and significance levels for the correlations between each of the variables (also not shown here). This table is important as you would expect some of the variables to be correlated if they are representing the same underlying latent variable, although you don’t want all of the variables to be highly correlated as this would indicate singularity. Hidden at the bottom left of this table is the determinant statistic that tests for the problem of singularity. You want this value to be greater than 0.00001. In this case it is 0.000017 so it can be assumed that there is no singularity in the data. The next table gives the KMO and Bartlett’s statistics (shown below). Each of these assesses whether there are patterns of correlations in KMO and Bartlett's Test the data that indicate that factor analysis is Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .832 suitable. The KMO ranges from 0-1, with higher values indicating greater suitability. Bartlett's Test of Approx. Chi-Square 1030.136 Sphericity df 78 Ideally you want this value to be greater than Sig. .000 0.7. You also want Bartlett’s statistic to be significant. In this case the KMO is greater than 0.7 at 0.832 and Bartlett’s is significant [χ2(78)=1030, p<0.001] and therefore it seems that factor analysis is suitable for this data set. The next table gives you the communalities for each of the variables that you have entered into the analysis (not shown here). The communality given in the extraction column represents the proportion of shared variance for each variable. So for example we can see that “I like my classmates” shares 80.1% of its variance with other variables.
Total Variance Explained Initial Eigenvalues % of Variance Cumulative % 36.859 36.859 25.700 62.559 18.281 80.840 3.220 84.059 2.824 86.883 2.509 89.393 2.037 91.430 1.851 93.281 1.726 95.008 1.607 96.614 1.422 98.037 1.054 99.091 .909 100.000 Extraction Sums of Squared Loadings Total % of Variance Cumulative % 4.792 36.859 36.859 3.341 25.700 62.559 2.376 18.281 80.840 Rotation Sums of Squared Loadings Total % of Variance Cumulative % 4.065 31.268 31.268 3.975 30.575 61.843 2.470 18.997 80.840

Component 1 2 3 4 5 6 7 8 9 10 11 12 13

Total 4.792 3.341 2.376 .419 .367 .326 .265 .241 .224 .209 .185 .137 .118

Extraction Method: Principal Component Analysis.

Next is the “Total Variance Explained” table (shown above). Initially the factor analysis extracts as many factors as there are variables, however, when running the analysis, you told it to only extract factors that had eigenvalues above 1. From looking at the

Dr Sam Knowles (skzk20@susx.ac.uk)

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