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ANALYSIS (EFA)

Sahar Afshan

Learning Objectives

Understand what is the factor analysis

technique and its applications in research

Discuss exploratory factor analysis (EFA)

Run EFA with SPSS and interpret the resulted

output

Factor analysis and principal component analysis

Carrying out the analyses in SPSS

Deciding on the number of factors

Exploratory and confirmatory FA

Exploratory (EFA)

Confirmatory (CFA)

is concerned with how many

factors are necessary to

explain the relations among

a set of indicators and with

estimation of factor

loadings. It is associated

with theory development.

Confirmatory Factor

Analysis is concerned with

determining if the number of

factors conform to what is

expected on the basis of

pre-established theory. Do

items load as predicted on

the expected number of

factors. Hypothesize

beforehand the number of

factors.

Factor Analysis

factors, or dimensions) that underlies the relations

among a set of observed variables.

Factor analysis is a technique that transforms the

correlations among a set of observed variables into

smaller number of underlying factors, which contain all

the essential information about the linear

interrelationships among the original test scores.

Factor analysis is a statistical procedure that involves the

relationship between observed variables

(measurements) and the underlying latent factors.

Factor Analysis

Equation modeling.

Factor analysis explores the inter-relationships among

variables to discover if those variables can be grouped

into a smaller set of underlying factors.

Many variables are reduced (grouped) into a smaller

number of factors

These variables reflect the causal impact of the latent

underlying factors

Statistical technique for dealing with multiple variables

Explore data for patterns.

Often a researcher is unclear if items or variables have a discernible patterns. Factor Analysis can

be done in an Exploratory fashion to reveal

patterns among the inter-relationships of the items.

Data Reduction.

Factor analysis can be used to reduce a large number of variables into a smaller and more

manageable number of factors. Factor analysis can create factor scores for each subject that

represents these higher order variables.

Factor Analysis can be used to reduce a large number of variables into a parsimonious set of few

factors that account better for the underlying variance (causal impact) in the measured

phenomenon.

Confirm Hypothesis of Factor Structure.

Factor Analysis can be used to test whether a set of items designed to measure a certain

variable(s) do, in fact, reveal the hypothesized factor structure (i.e. whether the underlying latent

factor truly causes the variance in the observed variables and how certain we can be about it).

In measurement research when a researcher wishes to validate a scale with a given or

hypothesized factor structure, Confirmatory Factor Analysis is used.

Theory Testing.

Factor Analysis can be used to test a priori hypotheses about the relations among a set of

observed variables.

In EFA, the researcher

is attempting to explore

the relationships among

items to determine if the

items can be grouped

into a smaller number of

underlying factors.

In this analysis, all items

are assumed to be related

to all factors.

V1

Factor 1

V2

V3

Factor 1

V4

Factor Loadings:

Measure the relationship between

the items and the factors.

Factor loadings can be interpreted

like correlation coefficients;

ranging between -1.0 and +1.0.

The closer the value is to 1.0,

positive or negative, the stronger

the relationship between the factor

and the item.

Loadings can be both positive

or negative.

V1

Factor 1

V2

V3

Factor 1

V4

Two statistics on the SPSS output allow you to look at some of the

basic assumptions.

Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy, and

Bartlett's Test of Sphericity

Kaiser-Meyer-Olkin Measure of Sampling Adequacy generally indicates

whether or not the variables are able to be grouped into a smaller

set of underlying factors. That is, will data factor well???

KMO varies from 0 to 1 and should be .60 or higher to proceed (can

us .50 more lenient cut-off)

High values (close to 1.0) generally indicate that a factor analysis may

be useful with your data.

If the value is less than .50, the results of the factor analysis probably

won't be very useful.

Kaiser-Meyer-Olkin (KMO)

Marvelous - - - - - Meritorious - - - - Middling - - - - - - Mediocre - - - - - - Miserable - - - - - Unacceptable - -

.90s

.80s

.70s

.60s

.50s

below .50

In this example, the data support the use of factor analysis and suggest that the

data may be grouped into a smaller set of underlying factors.

Total Variance Explained

Initial Eigenv alues

Factor

1

Total

3.513

% of Variance Cumulativ e %

29.276

29.276

Total

% of Variance Cumulativ e %

3.296

27.467

27.467

Total

% of Variance

3.251

27.094

Cumulativ e %

27.094

3.141

26.171

55.447

2.681

22.338

49.805

1.509

12.573

39.666

1.321

11.008

66.455

.843

7.023

56.828

1.495

12.455

52.121

.801

6.676

73.132

.329

2.745

59.573

.894

7.452

59.573

.675

5.623

78.755

.645

5.375

84.131

.527

4.391

88.522

.471

3.921

92.443

.342

2.851

95.294

10

.232

1.936

97.231

11

.221

1.841

99.072

12

.111

.928

100.000

Single

Gradual

is called the scree.

factors

variables with highest loadings.

variables.

(from Hair et al 2010 Table 3-2)

Significant Factor Loadings based on Sample Size

Sample Size

50

60

70

85

100

120

150

200

250

350

0.75

0.70

0.65

0.60

0.55

0.50

0.45

0.40

0.35

0.30

What else?

structure is good?

When

simple and clean structure.

Total Variance Explained > .60

Good

this comes in.

Why EFA?

20

Why EFA?

21

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