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PDAM #9
| Question | Answer |
|---|---|
| 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 |