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PDAM #9

QuestionAnswer
What are the 3 Assumptions for Factor Analysis 1, Sampling Adequacy = do variables share enough variance 2, Sphericity = isnt correlation matrix and identity matrix 3, Multicollinearity = the correlation should be unperfect
What is a identity matrix matrix with 1 in the diagonal otherwise with zeros only
How can we test sampling adequacy (3) 1, with Kaiser-Meyer-Olkin (KMO) 2, check if the variables are suitable for Factor Analysis because they share enough common variance 3, give index between 0- not suitable at all and 1-totally suitable SHOULD BE AT LEAST =0.5
How to test Sphericity (3) 1, Bartlett´s Test of Sphericity 2, compare covariance matrix to identity matrix 3, H0: Cov.Mat. = Ide.Mat H1: Cov.Mat ≠ Ide.Mat
How to test multicollinarity (2) 1, we calculate the determinant of the correlation matrix 2, the determinant should be higher that 0.00001
What are two ways to determine the appropriate number of factors 1, Eigenvalues - Kaiser´s criterion 2, Scree plot - Cattel´s criterion
How to determine number of factors with Scree Plot (3) 1, we build a scatterplot with eigenvalues for number of factors 2, we find the point of inflexion 3, Cattel´s Criterion = Point of inflexion - 1
How to determine number of factors with Kaiser´s criterion (3) 1, we create a matrix with factors and their eigenvalue 2, Eigenvalue = "How many unit of variables does this factor explain" 3, Factors with Eigenvalue over 1 should be retained
When to use Kaiser´s criterion over Scree Plot (4) 1, less than 30 variables 2, sample size more than 250 3, communatilies after extraction are less than .7 for every variable 4, mean communality (across all variables) above 0.6
What is rotating the factors we change the coordinate system NOT DATA to make it easier to overview (like the Vienna Subway Line model)
What are two ways to rotate the axes 1, Orthogonal rotation = factors remain perpendicular 2, Oblique rotation = factors can move closer or away from others
What is idea and most common method of A, Orthogonal rotation B,Oblique rotation A, Orthogonal rotation Idea = treats factors as uncorrelated Methods = Varimax B,Oblique rotation Idea= treats factors as correlated Methods = Direct oblimin
What is factor allocation (3) 1, we allocate the variable to factor with highest shared loading / correlation 2, factor loadings of at least 0.5 or 0.4 are substantial 3, the lower the loading the higher sample we need for significance
How to measure factor consistency (2) 1, Cronbach´s Alpha 2, more that 0.7 is acceptable
How many samples do we need for a Factor analysis rule of thumb = bare minimum of 10-20 observation per variable
What is difference between variance and kurtosis variance = amount of spread kurtosis = extremeness of tails relative to spread
Created by: semester1.IBWL
 

 



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