Solved Factor Analysis for MBA Students

1. 04/06/2016 Dr.S.Sakthivel
Factor Analysis
Calculate the Communality, Unique Variance and Eigen Valve , Proportion of Total
Variance , Proportion of Total Common Variance for the factors given in the table
below
Variable (May be of any thing ) Factor-I Factor-II
(Factor-I)
2
1 0.69 0.57 0.4761
2 0.62 0.59 0.3844
3 0.64 -0.52 0.4096
4 0.64 -0.59 0.4096
5 0.63 -0.57 0.3969
6 0.7 -0.61 0.49
7 0.68 -0.49 0.4624
8 0.68 -0.61 0.4624
Solution
Variable
(May be
of any
thing ) Factor-I Factor-II
(Factor-I)
2
(Factor-II)
2 Communality(h
2
)
Unique
Variance(1-
Communality
)
1 0.69 0.57 0.4761 0.3249 0.801 0.199
2 0.62 0.59 0.3844 0.3481 0.7325 0.2675
3 0.64 -0.52 0.4096 0.2704 0.68 0.32
4 0.64 -0.59 0.4096 0.3481 0.7577 0.2423
5 0.63 -0.57 0.3969 0.3249 0.7218 0.2782
6 0.7 -0.61 0.49 0.3721 0.8621 0.1379
7 0.68 -0.49 0.4624 0.2401 0.7025 0.2975
8 0.68 -0.61 0.4624 0.3721 0.8345 0.1655
Eigen Value i.e Common Variance Total
Squared Value of the each Factor
3.4914
(34.914%)
2.6007
26.00%)
6.0921
(60.92%)
Proportion of total variance
i.e Eigen Value / Number of Factors
34.91/8=0.436
(43.6%)
2.6007/8=0.325
(32.5%)
6.0621/8=0.762
(76.2%)
Proportion of Total Common Variance
Is to compute for 100
.436/76.2=0.57
9
.325/.762=0.42650
9
.762/.762=1.00