Week 12: More advanced Methods - Factor Analysis

Question 1

Factor analysis -

Answer 1

involves grouping similar variables into dimension / factors

Question 2

T/F Multiple variables can be grouped into a couple of factors and a couple of factors pre defined and the relationship to the multiple variables can be tested

Answer 2

True

Question 3

T/F Factor analysis is quite different from any of the statistical procedures that use data for comparison or prediction

Answer 3

True

Question 4

Factor analysis is most commonly used in what approach?

Answer 4

an exploratory approach to data analysis (Exploratory Factor Analysis; EFA)

Question 5

Exploratory Factor analysis is good for what 2 things?

Answer 5

1. good to examine the structure within a large number of variables
2. good to explain the nature of their interrelationships

Question 6

Factor analysis can also be used in what way?

Answer 6

also a confirmatory manner to data analysis (Confirmatory Factor Analysis; CFA)

Question 7

Confirmatory Factor Analysis is used in what two ways?

Answer 7

1. used to verify the factor structure of a set of observed variables
2. used to test the hypothesis that a relationship between observed variables and their underlying latent constructs exists

Question 8

T/F Factor analysis is more controversial than other analytic methods leaving room for subjectivity and judgment

Answer 8

True

Question 9

What method is crucial to provide structure to data sets with multiple observed variables?

Answer 9

Multivariate analysis

Question 10

EFA is a factor analysis used to do what?

Answer 10

1. explore the possible underlying factor structure of a set of observed variables without imposing a predefined structure of the outcome
2. identify the underlying factor structure
3. describe and identify the number of factors

Question 11

What are 3 goals of EFA?

Answer 11

1. to determine the number of latent constructs underlying a set of variables
2. to provide a means of explaining variation among variables using a few newly created factors
3. to define the content of meaning of factors

Question 12

3 Assumptions underlying EFA?

Answer 12

1. continuous level of measurement with normal distribution
2. sample size should be large enough more than 200 and 5 observations per variable
3. correlation > 0.3 between the variables

Question 13

Limitations of EFA?

Answer 13

1. variables could be sample specific, not generalizable
2. non-normal distribution of data
3. sample size larger than the required is desirable to accommodate the possible missing data
4. No causal inferences can be made from correlations alone

Question 14

CFA is a factor analysis used to do what?

Answer 14

test the hypothesis that there exists a relationship between the observed variables and their underlying latent constructs

Question 15

CFA procedure:

Answer 15

1. review the relevant theory and research literature to support model specification
2. specify a model
3. collect data
4. assess model fit by
   - hypothesis testing
   - fit indices look up
   e. g.) CFI (Confirmatory Factor Index)

Question 16

Limitations of CFA:

Answer 16

• sample size required to be sufficiently large
• multivariate normality
• outliers
• missing data

Question 17

What happens if an unacceptable model fit is found in CFA?

Answer 17

an EFA can be performed to identify the underlying factor structure, describe and identify the number of factors

Question 18

When developing factors, what is a factor loading?

Answer 18

the coefficient as a measure of the correlation between the individual variable and the overall factor

Question 19

Criteria for significance of factor loadings (FL) when developing factors:

Answer 19

FL > 0.3: minimum consideration
FL > 0.4: more important
FL > 0.5: practically significant

Question 20

How do you perform extraction of factors?

Answer 20

Pull out only the components using a cutoff point where value at least 1

Question 21

What is rotation of factors?

Answer 21

a process of developing a unique statistical solution so that each variable relates highly to only one factor

Question 22

After rotation of factors, what do you do?

Answer 22

Naming factors

Question 23

3 Limitations of factor analysis:

Answer 23

1. Be cautious about how ‘factors’ are interpreted they are not real measurement entities only hypothetical statistical concepts giving factor a name doesn’t make it real
2. Data may be organized differently by using different extraction or rotation methods these differences can alter a factor’s essential meaning
3. The generated factors may be totally uninterpretable within the framework of the research question

Question 24

T/F The application of factor analysis involves grouping similar variables into factors

Answer 24

True

Question 25

What type of analysis is used to explore the possible underlying factor structure of a set of observed variables without imposing a predefined structure of the outcome?

Answer 25

Exploratory factor analysis (EFA)

Question 26

What type of analysis is used used to test the hypothesis that there exists a relationship between the observed variables and their underlying latent constructs?

Answer 26

Confirmatory factor analysis (CFA)

Question 27

What are the steps of of an exploratory factor analysis ?

Answer 27

1. developing factors
2. extracting factors
3. rotating factors
4. naming factors

Question 28

Limitations of factor analysis stem from what?

Answer 28

subjectivity and judgmental nature in decisions:

1. factors are not real measurement entities only being hypothetical statistical concepts
2. the resulting data structure is subject to different selection of extraction or rotation methods
3. the generated factors may be totally uninterpretable within the framework of the research question