BRM ANALYSIS

Factor Analysis examines the interdependence among a list of variables. The emphasis is on isolating the factors that are common to the interrelated variables to summarise the important information in the data and assist in interpreting it.
Eigenvalues of the Correlation Matrix: Total = 8 Average = 1 Eigenvalue Difference Proportion Cumulative 1 3.37033542 2.11213318 0.4213 0.4213 2 1.25820223 0.24260513 0.1573 0.5786 3 1.01559710 0.15920632 0.1269 0.7055 4 0.85639078 0.18447248 0.1070 0.8126 5 0.67191831 0.30553587 0.0840 0.8966 6 0.36638243 0.08499373 0.0458 0.9424 7 0.28138870 0.10160368 0.0352 0.9775 8 0.17978503 0.0225 1.0000

Eigenvalue table from the analysis: An eigenvalue represents the amount of variance that is accounted for by a given component. In the column headed Eigenvalue (running from top to bottom), the eigenvalue for
each component is presented. Each row in the matrix (running left to right) presents information about one of the eight components: The row headed 1 provides information about the first component extracted, the row headed 2 provides information about the second component extracted, and so forth.

The next step of the analysis, therefore, is to determine how many meaningful components should be retained for interpretation. Four criteria that may be used in making this decision: the eigenvalue-one criterion, the scree test, the proportion of variance accounted for, and the interpretability criterion. In principal component analysis, one of the most commonly used criteria for solving the number-of-components problem is the eigenvalue-one criterion, also known as the Kaiser criterion (Kaiser, 1960). With this approach, you retain and interpret any component with an eigenvalue greater than 1.00. The rationale for this criterion is straightforward. Each observed variable contributes one unit of variance to the total variance in the data set. Any component that displays an eigenvalue greater than 1.00 is accounting for a greater amount of variance than had been contributed by one variable. Such a component is therefore accounting for a meaningful amount of variance, and is worthy of being retained. So in this only 3 components have eigenvalues greater than 1 so we will retain only 3 components, component 1 , component 2 and component 3.

The scree plot is a graphical representation of eigenvalues against the number of factors and is yet another way to determine the number of factors to be retained in the factor analysis situation.

From the above figure we can note how the curve drops sharply at first and then levels off as it approaches the horizontal axis. As seen in the scree plot, the scree(Known as the breaking point, turning point, breaking point or a point at which the curve starts to flatten) begins at factor number 2. This indicating that all the variables included in the model result in obtaining a single factor solution.
Factor Pattern Factor1 Factor2 Factor3 F1 0.57263 0.34978 0.31155 F2 0.85452 -0.08957 0.01387 F3 0.85003 -0.06228 -0.20429 F4 0.87382 -0.01415 -0.05804 F5 0.87556 -0.03613 -0.18731 F6 0.13210 -0.46754 0.76820 F7 0.17803 0.61223 0.48909 F8 -0.10181 0.72735 -0.09393

The rows of this matrix represent the variables being analysed, and the columns represent the retained components (these components are referred to as FACTOR1, FACTOR2 and so forth in the output). The entries in the matrix are factor loadings. A factor loading is a general term for a coefficient that appears in a factor pattern matrix or a factor structure matrix . In this we can see that correlation between V1 and Factor 1 is 0.57263 and between V2 and Factor 1 is 0.85452 and so on. And also The sum of the squared factor loadings for all factors for a given variable (row) is the variance in that variable accounted for by all the

factors, and this is called the communality. The communality measures the percent of variance in a given variable explained by all the factors jointly and may be interpreted as the reliability of the indicator. So communality of V1=(0.57263)^2+(0.34978)^2+(0.31155)^2=0.5473 V2=(0.85452)^2+(-0.08957)^2+(0.01387)^2=0.7384 It is given in the table below
Final Communality Estimates: Total = 5.644135 F1 F2 F3 F4 F5 F6 F7 F8 0.54730888 0.73842693 0.76816097 0.76712899 0.80299337 0.82616474 0.64572485 0.54822602

Ideally, you would like to review the correlations between the variables and the components and use this information to interpret the components; that is, to determine what construct seems to be measured by component 1, what construct seems to be measured by component 2, and so forth. Unfortunately, when more than one component has been retained in an analysis, the interpretation of an unrotated factor pattern is usually quite difficult. To make interpretation easier, you will normally perform an operation called a rotation. A rotation is a linear transformation that is performed on the factor solution for the purpose of making the solution easier to interpret .

Rotated Factor Pattern Factor1 Factor2 Factor3 F1 0.46518 0.56852 0.08777 F2 0.83708 0.10283 0.16476 F3 0.87616 -0.00772 -0.02127 F4 0.86494 0.12198 0.06432 F5 0.89541 0.02769 -0.02157 F6 0.00523 0.12308 0.90055 F7 0.02262 0.80310 0.01558 F8 -0.13736 0.48903 -0.53871

From the above Rotated Factor Pattern we can see that V2,V3,V4 and V5 load on Factor 1 V1 and V7 load on Factor 2 and V6 and V8 load on Factor 3. It is now necessary to turn to the questionnaire itself and review the content of the questions in order to decide what a given component should be named.