Essay Zone.com - Free essays!
REGISTER NOW!
Login to an existing account
     
GCSE essays
A Level essays
University essays
Forum
Why join?
Essay quality
FAQ

Search forums
About us
Contact us

 

 
factor analysis Free essay! Download now

Home > A Level > Business studies > factor analysis

factor analysis

You can download this essay for free. All you need to do is register and submit at least one of your essays to us.

Or you can purchase this essay for just $2 instantly without registering

Downloads to date: N/A | Words: 1329 | Submitted: 24-Jan-2012
Spelling accuracy: 98.9% | Number of pages: 8 | Filetype: Word .doc


This is what the first 3 pages of the essay look like

factor analysis essay previewfactor analysis essay previewfactor analysis essay preview

Description

uses of factor analysis

Preview

Factor analysis is used to find latent variables or factors among observed variables. In other words, if your data contains many variables, you can use factor analysis to reduce the number of variables. Factor analysis groups variables with similar characteristics together. With factor analysis you can produce a small number of factors from a large number of variables which is capable of explaining the observed variance in the larger number of variables. The reduced factors can also be used for further analysis.
There are three stages in factor analysis:
First, a correlation matrix is generated for all the variables. A correlation matrix is a rectangular array of the correlation coefficients of the variables with each other.
Second, factors are extracted from the correlation matrix based on the correlation coefficients of the variables.
Third, the factors are rotated in order to maximize the relationship between the variables and some of the factors.
Example
You may be interested to investigate the reasons why customers buy a product such as a particular brand of soft drink (e.g. coca cola). Several variables were identified which influence customer to buy coca cola. Some of the variables identified as being influential includecost of product,quality of product,availability of product,quantity of product,respectability of product,prestige attached to product,experience with product, andpopularity of product. From this, you designed a questionnaire to solicit customers' view on a seven point scale, where 1 = not important and 7 = very important. The results from your questionnaire are show on the table below. Only the first twelve respondents (cases) are used in this example.
Table 1: Customer survey

Preparing the Data set
Prepare and enter the data into SPSSData Editorwindow. If you do not know how to create SPSS data set seeGetting Started with SPSS for Windows. Define the eight variablescost,quality,avabity,quantity,respect,prestige,experie,popula, and use theVariable Labelsprocedure to provide fuller labelscost of product,quality of product,availability of product,respectability of product, and so on to the variables names. The completed data set look like the one shown above in Table 1.
Running the Factor Analysis Procedure
From the menu bar selectStatisticsand chooseData Reductionand then click onFactor. TheFactor Analysisdialogue box will be loaded on the screen. Click on the first variables on the list and drag down to highlight all the variables. Click on the arrow (>) to transfer them to theVariablesbox. The completed dialogue box should look like the one shown below.
The Factor Analysis dialogue box

All we need to do now is to select some options and run the procedure.
Click on theDescriptivesbutton and its dialogue box will be loaded on the screen. Within this dialogue box select the following check boxesCoefficients,Determinant,KMO and Bartlett's test of sphericity, andReproduced. Click onContinueto return to theFactor Analysisdialogue box. TheFactor Analysis: Descriptivesdialogue box should be completed as shown below.
The Factor Analysis: ...

Download this essay in full now!

Just upload at one of your essays to our database and instantly download your selection! Registration takes seconds

Or you can download this essay for $2 immediately without registering


Comments and reviews

Reviews are written by members who have downloaded the essay

No comments yet. If you download the essay you can review it afterwards.