Factor Analysis

analysis -> dimension reduction -> factor

all the variable selected in the 1st section

1) Descriptive

● check kmo and barletts(this will check whether the no. of sample is adequate)

2)Extraction

● screeplot(we want to check whether the factors we have got are all or some factors is
missing)

3)Rotation

● varimax(we want every variable to be heterogeneous that is the maximum variance

within the groups )

Output

● 0.550 - it will go from 0 to 1 and anything more than 0.5 means that u have adequate sample.
● communalities (see the extraction column)- this will show which is the most imp factor. in this
cash coupons is the most important factor . it says 84% is based on cash coupons
● total variance explained - this is showing that 7 have been clubbed to 3 factors.
o 80.649 - these factors explains 80.649% of the reasons.
● scree plot - this is showing after 3 all the factor added is giving a very small impact.
● rotated component matrix - see for the maximum mod and in this factor the question is going.
this is how the selection of a factor in which the variable will go and by checking all the
questions in one group we can identify what does 1 group mean.