The SAS System

15:42 Wednesday, December 1, 2013 3

Maximum Likelihood Factor Analysis Sales with Three Factors

The FACTOR Procedure
Initial Factor Method: Maximum Likelihood
Prior Communality Estimates: SMC

sales_
growth

sales_
new_account_
profitability
sales

0.97138085

0.96886082

mechanical_
abstract_
creativity_
reasoning_
reasoning_
test
test
test
test

0.95372014

0.90585396

0.78673225

mathematics_

0.88499321

0.97734575

Preliminary Eigenvalues: Total = 149.810878 Average = 21.4015541

Eigenvalue
1
2
3
4
5
6
7

131.585558
9.554128
6.561790
2.594704
0.785512
-0.535884
-0.734929

Difference

Proportion

Cumulative

122.031430
0.8783
0.8783
2.992338
0.0638
0.9421
3.967085
0.0438
0.9859
1.809193
0.0173
1.0032
1.321396
0.0052
1.0085
0.199046
-0.0036
1.0049
-0.0049
1.0000

3 factors will be retained by the NFACTOR criterion.

Iteration
1
2
3
4
5
6
7

Criterion

Ridge

1.6784538
1.4857310
1.4266303
1.4254277
1.4251497
1.4250580
1.4250259

0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000

Change

Communalities

0.0941 0.96621 0.97313 0.92564 1.00000 0.71551 0.91955 0.96556

0.0804 0.96027 0.96795 0.91614 1.00000 0.67208 1.00000 0.96573
0.1226 0.96138 0.96635 0.91346 1.00000 0.54952 1.00000 0.96081
0.0027 0.96096 0.96474 0.91222 1.00000 0.55177 1.00000 0.96349
0.0029 0.96103 0.96383 0.91316 1.00000 0.54884 1.00000 0.96413
0.0011 0.96090 0.96340 0.91340 1.00000 0.54769 1.00000 0.96474
0.0007 0.96087 0.96310 0.91364 1.00000 0.54695 1.00000 0.96502

Convergence criterion satisfied.

Significance Tests Based on 50 Observations

Test

Pr >
DF Chi-Square

ChiSq

H0: No common factors

21
489.7442 <.0001
HA: At least one common factor
H0: 3 Factors are sufficient
3
61.0386 <.0001
HA: More factors are needed

Chi-Square without Bartlett's Correction

68.401246
Akaike's Information Criterion
62.401246
Schwarz's Bayesian Criterion
56.725785
Tucker and Lewis's Reliability Coefficient 0.133279

The SAS System

15:42 Wednesday, December 1, 2013 4

Maximum Likelihood Factor Analysis Sales with Three Factors

The FACTOR Procedure
Initial Factor Method: Maximum Likelihood
Squared Canonical Correlations
Factor1
1.0000000

Factor2

Factor3

1.0000000

0.9741962

Eigenvalues of the Weighted Reduced Correlation Matrix: Total = 37.7539072 Average = 7.55078144
Eigenvalue
1
2
3
4
5
6
7

Difference

Proportion

Cumulative

Infty
Infty
Infty
Infty
37.7539207 36.6144735
1.0000
1.0000
1.1394473 0.8901717
0.0302
1.0302
0.2492756 0.8850839
0.0066
1.0368
-0.6358083 0.1171198
-0.0168
1.0199
-0.7529281
-0.0199
1.0000

Factor Pattern
Factor1

Factor2

Factor3

sales_growth
0.82329
0.10688
0.52117
sales_profitability
0.63849
0.20657
0.71604
new_account_sales
0.85344
0.24154
0.35644
creativity_test
0.59261
0.80549
0.00000
mechanical_reasoning_test
0.59313
0.29677
0.32657
abstract_reasoning_test
0.88347
-0.46849
0.00000
mathematics_test
0.65738
0.02849
0.72946

Variance Explained by Each Factor

Factor

Weighted

Unweighted

Factor1
Factor2
Factor3

49.9329313 3.72948277
2.3414167 1.06962285
37.7539207 1.55014078

Final Communality Estimates and Variable Weights

Total Communality: Weighted = 90.028269 Unweighted = 6.349246

Variable

Communality

Weight

sales_growth
0.96084687 25.5542571
sales_profitability
0.96306135 27.0993647
new_account_sales
0.91374193 11.5789021
creativity_test
1.00000000
Infty
mechanical_reasoning_test 0.54653161 2.2072558
abstract_reasoning_test
1.00000000
Infty
mathematics_test
0.96506464 28.5884755
The SAS System

15:42 Wednesday, December 1, 2013 5

Maximum Likelihood Factor Analysis Sales with Three Factors

The FACTOR Procedure
Rotation Method: Varimax
Orthogonal Transformation Matrix
1
1
2
3

0.36507
0.04722
0.92978

0.50218
0.83097
-0.23938

0.78392
-0.55431
-0.27965

Rotated Factor Pattern

Factor1

Factor2

Factor3

sales_growth
0.79018
0.37750
0.44040
sales_profitability
0.90861
0.32089
0.18578
new_account_sales
0.65438
0.54397
0.43546
creativity_test
0.25438
0.96694
0.01807
mechanical_reasoning_test
0.53419
0.46630
0.20914
abstract_reasoning_test
0.30041
0.05436
0.95226
mathematics_test
0.91957
0.17918
0.29555

Variance Explained by Each Factor

Factor

Weighted

Unweighted

Factor1
Factor2
Factor3

68.0911448 3.16410040
11.2560338 1.72883710
10.6810901 1.45630890

Final Communality Estimates and Variable Weights

Total Communality: Weighted = 90.028269 Unweighted = 6.349246
Variable

Communality

Weight

sales_growth
0.96084687 25.5542571
sales_profitability
0.96306135 27.0993647
new_account_sales
0.91374193 11.5789021
creativity_test
1.00000000
Infty
mechanical_reasoning_test 0.54653161 2.2072558
abstract_reasoning_test
1.00000000
Infty

mathematics_test

0.96506464

28.5884755