Practice Problem on Factor Analysis

1. Find below Partial SAS EG output attempting to analyze smartphone buying behavior
in India. Data on 19 variables were collected from 85 respondents using a 7 point
Likert Scale (where 1= extremely unimportant and 7= extremely important)

Kaiser's Measure of Sample Adequacy=0.734  

Operating System 0.838
General Utility Apps 0.539
Reliability 0.816
Discounts 0.796
Video Resolution 0.709
Screen Guard 0.877
Metal Body 0.697
Phone Body Cover 0.601
Popularity 0.879
Security Apps 0.790
Memory/RAM 0.490
Storage 0.817
Camera 0.797
Gorilla Glass Protection 0.729
Cheap Models 0.742
Free Gifts 0.656
Zero Interest 0.595
Processor 0.763
After Sales Service 0.843

  Rotated Factor Pattern    

Factor Factor Factor Factor Factor
 
1 2 3 4 5
Operating System 0.041 0.147 0.120 0.047 0.893
General Utility Apps 0.177 0.157 -0.142 0.030 0.680
Reliability 0.213 0.045 0.785 0.360 0.153
Discounts 0.161 -0.013 0.079 0.867 0.110
Video Resolution 0.800 0.120 0.144 0.113 0.147
Screen Guard -0.092 0.914 0.136 -0.030 0.119
Metal Body 0.103 0.825 0.013 0.082 0.000
Phone Body Cover -0.062 0.772 -0.031 0.016 0.030
Popularity 0.289 0.022 0.853 0.259 0.017
Security Apps 0.051 -0.005 0.151 0.115 0.867
Memory/RAM 0.694 -0.011 0.021 0.039 -0.074
Storage 0.845 -0.077 0.246 0.181 0.067
 Camera 0.861 -0.029 0.215 0.041 0.082
Gorilla Glass
0.023 0.825 -0.035 0.109 0.189
Protection
Cheap Models 0.127 0.242 0.210 0.759 0.215
Free Gifts 0.164 -0.103 0.404 0.665 -0.112
Zero Interest 0.056 0.128 0.406 0.641 0.017
Processor 0.802 -0.033 0.204 0.184 0.208
After Sales Service 0.271 0.010 0.851 0.213 0.026

Variance Explained By Each Factor

Factor 1 Factor 2 Factor 3 Factor 4 Factor 5
3.553 A: 2.696 2.542 2.240

a. What analysis is being carried out? Can we proceed with the interpretation and
analysis of results? Justify. (1
mark)

b. Which of the variables need more support in terms of data? Justify your answer. What
remedial action will you take? (2 marks)

c. How many factors have been identified in this study? What criteria do you think is
used in identifying these factors? (1
mark)

d. In the Rotated Factor Pattern Table, against “ Gorilla Glass Protection” and “Factor
2”,the value is 0.825. What does this indicate? (1 mark)

e. How much of variability in “Processor” is captured by Factors 1 to 5? ( 2 marks)

f. Show below the computation of the missing value ‘A’ in the variance explained table.
(2 marks)

g. What percent of the total common variation is explained by the factors identified? (1
mark)

h. Identify the variables explaining each of the factors. Suitably label each factor ( 5
marks)