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Factor Analysis
Prof. (Dr.) Risil Chhatrala
Department of Electronics and Telecommunication
International Institute of Information Technology, I²IT
www.isquareit.edu.in
1
Factor Analysis
Factor analysis is commonly used in:
 Data reduction
 Scale development
 The evaluation of the psychometric
quality of a measure, and
 The assessment of the dimensionality
of a set of variables.
International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech
Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website -
www.isquareit.edu.in | Email - info@isquareit.edu.in
2
Constructs : unobservable latent
variables
 Teaching
Effectiveness.
 Motivation
 Love
 Hate
 care
 Altruism
 Anxiety
 Worry
 Stress
International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech
Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website -
www.isquareit.edu.in | Email - info@isquareit.edu.in
3
 product quality
 Physical aptitude
 democracy
 reliability/power.
construct may include several
dimensions…
 Factor analysis measures not directly observable
constructs by measuring several of its underlying
dimensions.
 The identification of such underlying dimensions
(factors) simplifies the understanding and description of
complex constructs.
International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech
Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website -
www.isquareit.edu.in | Email - info@isquareit.edu.in
4
Factor Analysis: The
Measurement Model
D1
D8
D7D6
D5D4D3D2
F1 F2
Factor Analysis
6
 Find a small number of factors z, which when combined
generate x :
xi – µi = vi1z1 + vi2z2 + ... + vikzk + εi
where zj, j =1,...,k are the latent factors with
E[ zj ]=0, Var(zj)=1, Cov(zi ,, zj)=0, i ≠ j ,
εi are the noise sources
E[ εi ]= ψi, Cov(εi , εj) =0, i ≠ j, Cov(εi , zj) =0 ,
and vij are the factor loadings
Thank you!!
7
International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057
Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in
Prof. (Dr.) Risil Chhatrala
Associate Professor in
Department of Electronics and Telecommunication
International Institute of Information Technology (I²IT), Pune
risilc@isquareit.edu.in
8
International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057
Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in

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Factor Analysis & The Measurement Model

  • 1. Factor Analysis Prof. (Dr.) Risil Chhatrala Department of Electronics and Telecommunication International Institute of Information Technology, I²IT www.isquareit.edu.in 1
  • 2. Factor Analysis Factor analysis is commonly used in:  Data reduction  Scale development  The evaluation of the psychometric quality of a measure, and  The assessment of the dimensionality of a set of variables. International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in 2
  • 3. Constructs : unobservable latent variables  Teaching Effectiveness.  Motivation  Love  Hate  care  Altruism  Anxiety  Worry  Stress International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in 3  product quality  Physical aptitude  democracy  reliability/power.
  • 4. construct may include several dimensions…  Factor analysis measures not directly observable constructs by measuring several of its underlying dimensions.  The identification of such underlying dimensions (factors) simplifies the understanding and description of complex constructs. International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in 4
  • 5. Factor Analysis: The Measurement Model D1 D8 D7D6 D5D4D3D2 F1 F2
  • 6. Factor Analysis 6  Find a small number of factors z, which when combined generate x : xi – µi = vi1z1 + vi2z2 + ... + vikzk + εi where zj, j =1,...,k are the latent factors with E[ zj ]=0, Var(zj)=1, Cov(zi ,, zj)=0, i ≠ j , εi are the noise sources E[ εi ]= ψi, Cov(εi , εj) =0, i ≠ j, Cov(εi , zj) =0 , and vij are the factor loadings
  • 7. Thank you!! 7 International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in
  • 8. Prof. (Dr.) Risil Chhatrala Associate Professor in Department of Electronics and Telecommunication International Institute of Information Technology (I²IT), Pune risilc@isquareit.edu.in 8 International Institute of Information Technology, I²IT, P-14, Rajiv Gandhi Infotech Park, Hinjawadi Phase 1, Pune - 411 057 Phone - +91 20 22933441/2/3 | Website - www.isquareit.edu.in | Email - info@isquareit.edu.in