Factor Analysis Essay

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Factor analysis can only be applied to continuous variables (or) interval scaled variables. Factor analysis is like Regression analysis as it tries to ‘best fit’ the factors to a scatter diagram of data in such a way that the factors explain the variance associated with the responses to each statements. Factor analysis was conducted by the researcher in the present research in the following stages.
1. Desk Research
2. Formulation of questionnaire
3. Collection of data
4. Feeding and processing the input
5. Analyzing the output
6. Identification of factors and naming them
7. Conclusion
FACTORS CHOSEN FOR THE ANALYSIS:
The Contextual intelligence in leadership was studied by selecting various parameters. Factor analysis and detailed analysis …show more content…

The test of sphericity is based on the chi-square transformation of the determination of the correlation matrix. A large value of test statistics favors the rejection of null hypothesis.
Kaiser-Mayer-Olkin measure of sampling - This index compares the magnitude of the observed correlation co-efficient to the magnitude of partial correlation co-efficient. Instant small values indicate that the correlation between pairs of variables cannot be explained by other variables and that factor analysis for evaluating a particular aspect will not be appropriate.
Eigen Values and communalities – A factor’s Eigen value or latent route is the sum of squared of its factor loading. It helps us to understand how well a given factor fits the data gathered from all sample respondents on all the statements. Communalities were the sum of squares of a statement’s factor loading, i.e., it explains how much each variables accounts for the factors taken together.
All 12 items given in the questionnaire were selected for factor analysis by using principle component extraction with an orthogonal (Varimax) rotation. The number of factors is unconstrained. For the sake of convergent validity, 0.50 was used as a factor loading cut-off

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