Factor Analysis and Research Methods
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Questions and Answers

What is the primary goal of factor analysis?

  • To ensure all variables load significantly on every factor
  • To create a linear relationship among all variables
  • To achieve convergent and discriminant validity (correct)
  • To summarize and reduce data effectively (correct)

What characterizes orthogonal rotation in factor analysis?

  • Axes remain at right angles throughout the rotation (correct)
  • Factors may overlap significantly
  • The rotation results in significant loading on multiple factors
  • The angles between axes can change freely

What is desired regarding variable loadings when conducting factor analysis?

  • No variable should load significantly on any factor
  • Variables should load significantly on only one factor whenever possible (correct)
  • It is sufficient for variables to have zero loadings
  • Each variable should load significantly on all factors

Why is rotation performed in factor analysis?

<p>To achieve a better fit between factors and data points (C)</p> Signup and view all the answers

What does convergent validity ensure in the context of factor analysis?

<p>A variable expected to load on a factor does so significantly (C)</p> Signup and view all the answers

What is the minimum accepted value of Cronbach's alpha for reliability analysis?

<p>0.7 (A)</p> Signup and view all the answers

In factor analysis, what type of variables is crucial for conducting the analysis?

<p>Metric variables (D)</p> Signup and view all the answers

Which of the following is not a step in the iterative process of assessing reliability and validity?

<p>Recalculating the total variance (A)</p> Signup and view all the answers

What does a high factor loading indicate in factor analysis?

<p>Strong correlation with the factor (D)</p> Signup and view all the answers

Which criterion is used to assess the normal distribution of data in univariate analysis?

<p>Skewness and kurtosis (C)</p> Signup and view all the answers

What is the purpose of using ANOVA in the described experiment?

<p>To compare mean scores among different treatment groups (B)</p> Signup and view all the answers

Which statement describes the characteristics of the independent variable in this study?

<p>It consists of multiple treatment levels that are categorical (B)</p> Signup and view all the answers

What does the null hypothesis state in the context of this experiment?

<p>All population means are equal with no observed differences (B)</p> Signup and view all the answers

When would you be interested in rejecting the null hypothesis in this study?

<p>When you want to conclude that waiting time affects service perceptions (B)</p> Signup and view all the answers

Which of the following is NOT a requirement for the dependent variable in the experiment?

<p>It must be independent from the independent variable (B)</p> Signup and view all the answers

What is the primary purpose of conducting a KMO/Bartlett's Test in factor analysis?

<p>To assess the adequacy of the sample size for factor analysis (A)</p> Signup and view all the answers

In factor analysis, what does a communalities value greater than 0.20 indicate?

<p>The variable has substantial shared variance with the extracted factors (B)</p> Signup and view all the answers

What inefficiency might occur when using Orthogonal rotation as opposed to Oblique rotation in factor analysis?

<p>Inability to assess the correlation between factors (B)</p> Signup and view all the answers

What does the term 'Eigenvalue' refer to in the context of factor analysis?

<p>The measure of variance explained by each factor (A)</p> Signup and view all the answers

Flashcards

Factor Analysis

A statistical technique used to simplify a set of variables by grouping them into underlying factors. The goal is to reduce the complexity of data while retaining the most important information.

Factor Rotation

A process in factor analysis where the axes representing the factors are rotated to improve the interpretability of the results. This is done by aligning the axes more closely with the data points.

Orthogonal Rotation

A type of factor rotation where the axes are kept at right angles (90 degrees). This ensures that the factors remain independent of each other.

Convergent Validity

A situation in factor analysis where a variable loads significantly on one factor and has minimal or no loading on other factors. This indicates that the variable is strongly associated with a specific underlying construct.

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Discriminant Validity

A situation in factor analysis where a variable loads significantly on only one factor and not significantly on other factors. This indicates that the variable is distinct from other underlying constructs.

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KMO/Bartlett's Test

A statistical test that assesses the suitability of data for factor analysis. It checks if the correlations between variables are sufficiently strong to justify factor extraction.

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Communality

The proportion of variance in a variable explained by all the extracted factors. A higher communality (closer to 1) indicates a stronger fit to the factor solution.

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Orthogonal Rotation (Varimax)

A type of factor rotation that assumes factors are uncorrelated (independent). This is widely used for simplicity and ease of interpretation.

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Oblique Rotation (Oblimin)

A type of factor rotation that allows factors to be correlated. It's often preferred for complex data where factor relationships are important.

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Cronbach's Alpha

A statistical measure of internal consistency, indicating how well items on a scale measure the same underlying construct. Values closer to 1 show greater reliability, a generally accepted threshold being 0.7.

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Communalities

A measure of how much variation in a variable is explained by the common factors in a factor analysis model. It ranges from 0 to 1, where 1 indicates that the factor perfectly explains the variable.

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Principal Component Analysis (PCA)

A method in factor analysis that aims to explain the total variance of all variables using a set of linear combinations. It aims to find factors that capture the maximum amount of variance in the data.

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Factor Loading

In factor analysis, the loading of a variable on a factor refers to the correlation between the variable and the factor. It indicates the strength and direction of the relationship.

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Independent Variable (IV)

A variable that is manipulated or controlled by the researcher to observe its effect on the dependent variable. In an experiment, the independent variable is the treatment being applied to different groups, such as different waiting times in a customer service study.

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Dependent Variable (DV)

A variable that is measured or observed in an experiment to see how it is affected by changes in the independent variable. In a customer service study, this could be a customer's perception of service quality or their purchase intention.

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ANOVA (Analysis of Variance)

A statistical test used to compare the means of two or more groups. It is used to determine if there is a statistically significant difference between the groups, or if the observed differences are likely due to chance.

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Level (of a factor)

The category or level within a factor that represents a specific treatment condition. For example, in a waiting time experiment, 'below average waiting time' would be a level of the 'waiting time' factor.

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Null Hypothesis

The statement that there are no differences between the means (averages) of the groups being compared. ANOVA is used to test this assumption. If the differences are statistically significant, the null hypothesis is rejected.

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Study Notes

Methodology Marketing & Strategic Management Research (MMSR)

  • The exam is not an open book exam
  • The exam is in January
  • Zoom account with RU mail is required
  • 2 assignments in block 1 and 2 assignments in block 2
  • Thesis is not mandatory for quantitative
  • Videos are available in advance
  • Assignments are done in groups + Online tutorial
  • Application lecture
  • Book: Hair, multivariate data analysis 8th edition 9781473756540

Introduction Lecture

  • The exam is not an open book exam, the book has to be studied detailed.
  • Zoom account with RU mail is required
  • 2 assignments in block 1, and 2 assignments in block 2
  • Thesis is not mandatory for quantitative research.
  • Videos are available in advance
  • Assignments are done in groups + online tutorial
  • Application lecture
  • Book title: Hair, multivariate data analysis 8th edition, ISBN: 9781473756540

Theory

  • Theories in MSR are not theoretical, practical
  • Theories are testable or falsifiable
  • Theories consist of constructs (concepts, phenomena, variables)
  • Theories consist of hypotheses (about their interactions or relationships).
  • A theory is a proposed description, explanation, or model of the manner of interaction of phenomena.

Hypothesis

  • Interrelation between two constructs (consist of condition and consequence)
  • Independent variable is the condition.
  • Dependent variable is the consequence.
  • Example: The higher A, the higher B, or A leads to B
  • Can hypothesize relatedness of two constructs, or influence one another.

Construct

  • Conceptual term used to describe a phenomenon of theoretical interest.
  • It is quantifiable and observable (directly or indirectly)
  • Indirectly observable construct is latent (e.g., IQ).
  • Example: Customer satisfaction

Methodology

  • Researchers in marketing and strategy research usually want to investigate relationships between constructs:
  • Direct causal relationship (arrow from A to B): A leads to B
  • Mediated (indirect) causal relationship: A affects Z which affects B
  • Spurious relationship: a third variable Z affects both A and B - unidirectional
  • Bidirectional (cyclic) causal relationship (A to B, B to A)
  • Unanalyzed relationship: correlation between A and B
  • Moderated causal relationship: the effect of A on B depends on M

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Description

This quiz explores key concepts in factor analysis and its application in research methodologies. Questions cover important aspects such as orthogonal rotation, variable loadings, reliability analysis, and the significance of the null hypothesis. Test your knowledge on these foundational topics in statistics and psychology.

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