Factor Analyses

What is factor analysis? Why we need it? Differences between CFA&EFA How is FA related to PCA? How do I select the method of analysis? How do I interpret the output of a factor analysis? and real examples.

Factor analysis is a technique we can use to find patterns in the correlations among variables. highly correlated = factor

What is factor analysis?

Factor analysis is a correlation- based technique.

What is factor analysis?

FA tells us how the items clustered together by showing which questions were answered in the same ways. Researcher use factor analysis to try to find relations among measurement- and to explain them.

Purpose of FA?

To discover simple patterns in the pattern of relationships among the variables Seeks to discover if the observed variables can be explained largely or entirely in terms of a much smaller number of variables called factors.

Types of Factor analysis

EFA : Summarizing data by grouping correlated variables; has some idea how things might turn out even when exploring
CFA : Testing generalization of factor structure to new data; occasionally discovers something unexpected when confirming

Differences between EFA & CFA

The most important distinction between the two is that exploratory factor analysis tends to occur earlier in the process of research on a topic, whereas confirmatory factor analysis usually occurs later, only after considerable exploratory work has helped identify pattern to test

Types of factoring Principal component analysis Canonical FA Common FA Image factoring Alpha factoring Factor regression model

Factor analysis related to PCA, but the two How is FA is related to PCA? are not identical. Therere many types of FA and most widely used is PCA.

Item/indicator PCA FA

Factor/component

IV or predictor variable DV or outcome variable DV or outcome variable IV or predictor variable

How is FA related to PCA?

PCA is easier to explain, very often elementary descriptions of FA are really definition of PCA. Nonmathematical descriptions of the 2 techniques are parallel.

FA versus PCA?

FA produces factors; PCA produces components Factors cause variables; components are aggregates of the variables FA and PCA are both the methods of data reduction Take many variables and explain them with a few factors or components FA analyzes only common variance without error or unique variance; PCA analyzes all of the variance FA: What are the underlying processes that could produce these correlations?; PCA: Just summarize empirical associations, very data driven

PCA results in principal components that account FA versus PCA? for a maximal amount of variance for observed variables; FA account for common variance in the data PCA minimizes the sum of squared perpendicular distance to the component axis; FA estimates factors which influence responses on observed variables

Conceptual FA and PCA

FA

PCA

I1

I2

I3

I1

I2

I3

How do I select the method of analysis?

We can use both of the FA and PCA to describe nonmathematical issues. FA is mostly used in social and behavioral science. FA is so computationally intense, the only realistic way to do it is by computer program. The PCA assumes that the components are totally uncorrelated. The items are treated as though they are measured without error and as though they have no specific variance or variance that is not shared with the other items.

How do I select the method of analysis?

Run factor analysis if you assume or wish to test a theoretical model of latent factors causing observed variables. Run principal components analysis If you want to simply reduce your correlated observed variables to a smaller set of important independent composite variables

How do I interpret the output of a factor analysis? and real examples.