Ans-3-c-(a)

To predict the factors for an underlying structure using different

perceptional variables.
To reduce the number of variables, factor analysis has been applied.

Checking whether data is appropriate for factor analysis or not:

As per Bartlett’s test Table:
H0: correlation matrix is an identity matrix.

According to the Bartlett’s Table, the sign/p value(0.000) is less than(<) the alpha value
which is 0.05 so we reject the null(H0) hypothesis, means that correlation matrix is not an
identity matrix, so this is appropriate for factor analysis.

KMO measure is also near about 1, which shows that we can further proceed for analysis.

Ans-3-c-(b)
Using the Total variance explained table, variance of the variables is
explained using the extracted factors:

As per the Total Variance table, 4 factors with 68.16% of variation shared, means 4 factors
explained 68% of information. This also shows that it is appropriate for the analysis further.

Ans-3-c-(c)
Using the pattern matrix, we can see that in Factor 1, the loads for 3 factors are
high and closely related which shows that there is issue of cross loading. The difference
between the factors is almost more than .200 which shows there is major issue related to
cross loading in Factor 1.

Order & Billing .748

Price Flexibility .537

Delivery Speed .999

This issue of cross-loading can be removed by eliminating the factors as they will cause
problem. PCA can be used with rotated component matrix to reduce this.

Ans-3-c-(d)