Truong Thi Hoa, Ph.

D 1
1. Preparing data for analysis
2. Descriptive statistics
3. Inferential statistics
4. Testing measurement scales
5. Testing research model and hypotheses

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4.1. Testing the reliability of the measures
Cronbach’s Alpha
4.2. Testing the validity of the measures
Exploratory Factor Analysis (EFA)

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Reliability of measurements: the consistency of a concept.
-> Cronbach’s Alpha is used to assess the internal
consistency (reliability) of a set of scale
! ∑$
!"# %%
&
!
𝛼 = (!"#)(1 − %'&
)

where:
k: number of scale items
𝜎&'! : variance associated with item i
𝜎(' : variance associated with the observed total scores

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There must be at least three items (observed variables) of a
measure to calculate Cronbach’s alpha.
Results of reliability tests (Cronbach’s alpha) -> which observed
variables should be dropped and which ones should be kept
Standards:
𝛼 ≥ 0.6: the measurement scale is acceptable
0.8 ≥ 𝛼 ≥ 0.7: the measure measurement scale is good

Keep the items with Corrected item – Total correlation (hệ số tương
quan biến tổng hiệu chỉnh) ≥ 0.3

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Working with SPSS
Analyze → Scale → Reliability Analysis
For example: open file giatridichvudaotao.sav

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Working with SPSS
Analyze → Scale → Reliability Analysis

𝛼 = 0.695
-> acceptable

keep all items

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Working with SPSS
Analyze → Scale → Reliability Analysis
For example: open file testmeasure.sav

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Working with SPSS
Analyze → Scale → Reliability Analysis
For example: open file testmeasure.sav

𝛼 < 0.6
-> need to drop some
items

First, exclude this item and rerun the test

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Working with SPSS
Analyze → Scale → Reliability Analysis
For example: open file testmeasure.sav

𝛼 > 0.6
-> acceptable

exclude this
item

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Working with SPSS
Analyze → Scale → Reliability Analysis
For example: open file testmeasure.sav

-> good

Keep these four items

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 A large number of observed variables (items) are collected
for analysis and most of them are related
-> need to reduce the number of variable and summarize
variable
Exploratory Factor Analysis (EFA): used to reduce data to
smallest set of summary variables

Source: Watkins (2018) 12

 Statistical indicators
The KMO and Bartlett test
Standard:
KMO (1 ≥ 𝐾𝑀𝑂 𝑣𝑎𝑙𝑢𝑒 ≥ 0): Whether it is suitable to proceed with
Factor analysis
- KMO value ≥ 0.5 -> Acceptable to proceed with factor analysis
(higher value means the data is more suitable)

Bartlett test: whether measured variables are intercorrelated

- Significant chi-squared value of Bartlett test (sig. < 0.05)
-> acceptable (measured variables are sufficiently intercorrelated to
justify the factors)
Source: Watkins (2018); Hoàng Trọng & Chu Nguyễn Mộng Ngọc (2008) 13
 Statistical indicators
Eigenvalue: used to estimate the optimum number of factors to obtain
Eigenvalue > 1: the factor should be kept

Source: Watkins (2018); Hoàng Trọng & Chu Nguyễn Mộng Ngọc (2008) 14
 Statistical indicators
Factor loading: correlations between common factors and measured
variables (1 ≥ 𝑓𝑎𝑐𝑡𝑜𝑟 𝑙𝑜𝑎𝑑𝑖𝑛𝑔 ≥ −1)
Factor loading ≥ 0.3: minimum (sample size ≥ 350)
Factor loading ≥ 0.4: important
Factor loading ≥ 0.5: meaningful (sample size around 100)
Factor loading ≥ 0.75: meaningful (sample size around 50)

Differences in factor loading between factors should be not lower than

0.3

Source: Watkins (2018); Hoàng Trọng & Chu Nguyễn Mộng Ngọc (2008) 15
 Statistical indicators
Total variance explained: The extent to that the factors be able to
explain total variance
Total variance explained ≥ 0.5: acceptable
Total variance explained ≥ 0.6: good

Source: Watkins (2018); Hoàng Trọng & Chu Nguyễn Mộng Ngọc (2008) 16
Working with SPSS
open file: testmeasure.sav
Analyze -> Dimension Reduction -> Factor

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Working with SPSS
open file: testmeasure.sav
Analyze -> Dimension Reduction -> Factor

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Working with SPSS
open file: testmeasure.sav
Analyze -> Dimension Reduction -> Factor

Results:
Three important tables

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Results

Can proceed with

KMO value > 0.5 factor analysis

p-value (sig.) < 0.05

measured variables are

sufficiently intercorrelated
to justify the factors

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Results
Should keep the
first two factors
(eigenvalue > 1)
Total variance
explained (Tổng
phương sai trích)
=66.172%

The first factor is able to explain

35.957% of the variance and the second
one is able to explain 30.214% of
variance

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 Results

Three variables (lam trang rang,

lam hoi tho thom tho, lam rang
trang bong hon) are substantially
loaded by Factor 1

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 Name and label factors

Name and label factors based on set of variables that have high
absolute values of factor loading (≥ 0.5)

Factor scores

We can apply the results of factor analysis as new factor score for
further analysis: as independent variable in regression analysis to test
the research model and hypotheses

Source: Watkins (2018); Hoàng Trọng & Chu Nguyễn Mộng Ngọc (2008) 23
Save factors as variables for further analysis
Regression method

Fi = Wí1 X 1 + Wí 2 X 2 + Wí 3 X 3 +...+Wík X k
Fi: Factor score of factor i,
( i = 1, m) with: m is the number of factors extracted as results of EFA.
Wik: factor score coefficient
Xk : variables

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§ Hoàng Trọng và Chu Nguyễn Mộng Ngọc. (2008). Phân tích dữ liệu nghiên cứu với
SPSS. NXB Hồng Đức.
§ Watkins, M. W. (2018). Exploratory Factor Analysis: A Guide to Best Practice. Journal
of Black Psychology, 44(3), 219–246. https://doi.org/10.1177/0095798418771807

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