Based on questions I’ve been asked by clients, most analysts prefer using the factor analysis procedures in their general statistical software to run a confirmatory factor analysis.
While this can work in some situations, you’re losing out on some key information you’d get from a structural equation model. This article highlights one of these.
Today, I would like to briefly describe four misconceptions that I feel are commonly perceived by novice researchers in Exploratory Factor Analysis:
In Principal Component Analysis, a set of variables is transformed into a smaller set of linear composites known as components. This method of analysis is essentially a method for data reduction.
Principal Component Analysis (PCA) is a handy statistical tool to always have available in your data analysis tool belt.
It’s a data reduction technique, which means it’s a way of capturing the variance in many variables in a smaller, easier-to-work-with set of variables.
There are many, many details involved, though, so here are a few things to remember as you run your PCA.