Question

Examine Figure B on Page 9. This table provides part of the output from an exploratory factor analysis. Based on this analysis, how many factors should be retained in the model?

a. 1

b. 2

c. 3

d. 4

Figure B Initial Eigenvalues Total % Of Variance | Cumulative % 49.236 64.209 73.630 81.429 87.561 93.070 96.810 100.000 Component 3.939 1.198 754 624 491 441 299 255 49.236 14.973 9.421 7.799 6133 5.509 3.739 3.190 Extraction Method: Principal Component Analysis

Answer 1

Based on the table, we see that the first 4 factors can explain more than 80% of the variance. Hence, we decide to retain 4 factors in the model.