Factor loadings have values of:
A) Always more than 1
B) Usually more than 1, but sometimes slightly below 1
C) Between -1 and 1 including zero
D) The correlation squared

Question

Quizplus · Accepted Answer

Factor loadings are estimates of correlation coefficients between the observed variables and the underlying factor, and hence they can take any value between -1 and 1, including zero. Factors with loadings close to -1, 0 or 1 are considered statistically significant. Factors with loadings close to 0 are often ignored. Factors with loadings close to -1 or 1 provide more information and are more relevant in practice. Factors with loadings close to 0 are often ignored.

Factor Loadings Have Values Of