SPSS Tutorial for MK852 Spring 2003

MK 852: INTRODUCTION TO SPSS Factor Analysis

Used for: Data reduction: come up with a new, smaller set of variables that express what is common among the original variables. Substantive interpretation: identify the constructs or dimensions that underlie the observed variables. Objective: To transform a set of interrelated variables into a set of unrelated combinations of these variables where each combination (factor) accounts for a decreasing proportion of the variance in the original variables. There are three steps in Factor Analysis and these are: 1. Determining the factors to retain: the amount of variation explained by each factor as indicated by its eigenvalue. Factors with eigen value greater than one are retained. 2. Identifying which variables belong to which factors: Find the highest loading for each variable and highlight it. Examine loadings for significance (cutoff value of 0.3 or 0.35) within each factor. Identify all variables that do not have significant loadings on any factor (hopefully none) or have significant loading on multiple factors (known as cross-loading) and eliminate them from further analysis. 3. Naming the factors: Focus on the significant loadings and try to name the factors on the basis of what those variables that load on one factor seem to have in common. SPSS generates several different tables and graphs. However, not all of them are useful to us. Specifically, we have to examine only two of them: 1. Total Variance Explained It identifies factors with Eigenvalues greater than 1.0. Shows total variance captured by valid factors. 2. Rotated Component Matrix Identifies factor loadings after rotation. It is the matrix used for interpretation of factor names.

SPSS Tutorial for MK852 Spring 2003

Example of Factor Analysis Steps: Analyze Data Reduction Factor Select variables q1a to q1o and move to Variable box Descriptives select Initial Solution and continue Extraction select Principal Components, Correlation Matrix, Unrotated Factor Solution, Eigen Values over 1 Rotation select Varimax Scores select Display Factor Score Coefficient Matrix Options Missing Values select Exclude Cases Listwise and Coefficients Display Format click on Sorted by Size OK

Selected Outputs: Total Variance Explained Rotated Component Matrixa Question: How many factors would you keep and what names would you give them?

SPSS Tutorial for MK852 Spring 2003

Factor Analysis Using Multidimensional Scaling This is useful when you have overall similarity data and not attribute data. The data can be ordinal, interval or ratio but the output is a perceptual map where the distances are assumed to be interval scaled. 1. Select ANALYZE from the SPSS menu. 2. Click SCALE and then MULTIDIMENSIONAL SCALING (ALSCAL). 3. Move ATLANTA, BOSTON DC into the VARIABLES box. 4. In the distances box check DATA ARE DISTANCES (default). SHAPE should be SQUARE SYMMETRIC (default). 5. Click on MODEL. In the pop-up window, in the LEVEL OF MEASUREMENT BOX, check INTERVAL. In the SCALING MODEL BOX, check EUCLIDEAN DISTANCE (default). In the CONDITIONALITY BOX, check MATRIX (default). CONTINUE. 6. Click on OPTIONS. In the pop-up window, in the DISPLAY box, check GROUP PLOTS, DATA MATRIX, and MODEL AND OPTIONS SUMMARY. Click CONTINUE. 7. Click OK.