Beruflich Dokumente
Kultur Dokumente
19-2
Assumptions
An Example
A study conducted to determine customers perception and attributes
of an airline. A set of 10 statements were constructed and responden
were asked to rate in a 7 point scale
( 1= completely agree, 7 = completely disagree )
Statements were as follows:
1. The Airline is always on time
2. The seats are very comfortable
3. I love the food they provide
4. Their air-hostesses are very courteous
5. My boss/friend flies with the same airline
6. The airlines have younger aircrafts
7. I get the advantage of a frequent flyer
program
8. It suits my schedule
9. My mom feels safe when I fly in this airline
10. Flying by this airline compliments my lifestyle
and
19-6
Example Contd..
Do the ten different statements
indicate 10 different factors which
influence a customer to fly by this
airline ?
OR
Is there any correlations between these
contd
The weights which are assigned to each of the variables are not
taken arbitrarily but are chosen such that the variance in the
factor scores obtained is the maximum.
Once the first set of weights are obtained, a new set of weights
are obtained so that the new set of factor scores shows the
maximum variance but keeping in mind that these set of factor
scores are uncorrelated with the first set of factor scores.
contd
factors
It is possible to extract as many factors as there
are variables but the very purpose of factor
analysis will be defeated and hence a smaller
number of factors need to be found.
Question is --- how many?
factors
Scree Plot
3.0
Eigenvalue 2.5
2.0
1.5
1.0
0.5
0.0
1 2 4 5 6
3Component Number
Determining the number of 19-13
factors
Analysis
Kaiser-Meyer-Olkin ( KMO ) measure of sampling
adequacy . This index compares the magnitude
of observed correlation coefficients to the
magnitude of partial correlation coefficients.
Typically it should be
> 0.5 is considered as good enough for
conducting
Factor analysis for the data under consideration.
Correlation Matrix
Variables
V1 1.0
V2 -0.5
Results of Principal Components 19-17
Analysis
Communalities
Variables I nit
V1 1.0
I nitial Eigen values
V2 1.0
V3 1.0
Results of Principal Components 19-18
Analysis
Extraction Sums of
Factor Eigen
Factor Matrix value
1 2.731
2
Variables 2.218
Fa
19-19
Conducting Factor Analysis
Rotate Factors
Although the initial or unrotated factor matrix
indicates the relationship between the factors and
individual variables, it seldom results in factors that
can be interpreted, because the factors are
correlated with many variables. Therefore, through
rotation the factor matrix is transformed into a
simpler one that is easier to interpret.
In rotating the factors, we would like each factor to
have nonzero, or significant, loadings or coefficients
for only some of the variables. Likewise, we would
like each variable to have nonzero or significant
loadings with only a few factors, if possible with
only one.
The rotation is called orthogonal rotation if the
axes are maintained at right angles.
19-20
Conducting Factor Analysis
Rotate Factors
The most commonly used method for rotation
is the varimax procedure. This is an
orthogonal method of rotation that minimizes
the number of variables with high loadings on
a factor, thereby enhancing the interpretability
of the factors. Orthogonal rotation results in
factors that are uncorrelated.
The rotation is called oblique rotation when
the axes are not maintained at right angles,
and the factors are correlated. Sometimes,
allowing for correlations among factors can
simplify the factor pattern matrix. Oblique
rotation should be used when factors in the
population are likely to be strongly correlated.
Results of Principal Components 19-21
Analysis
Rotation Sums of S
Factor Eigenvalu
Rotated1 Factor M
2.68
2 2.26
Variables F
V1
19-22
Conducting Factor Analysis
Interpret Factors
factor
Variable 1 2
Factor Plot in Rotated Space
Factor 1 V1 0.962 -2.66E-
02
1.0 V4 ∗∗ ∗ V6 V2 -5.72E-02 0.848
V2
V3 0.934 -0.146
0.5 V4 -9.83E-02 0.854
Factor
V5 -0.933 -8.40E-
0.0
V1∗ 02
∗ V5 V3∗ V6 8.337E-02 0.885
2
-0.5
-1.0
A few examples