Jack is performing a factor analysis on twenty items relevant to perceptions of service quality.Using a principal components approach,the following eigenvalues were produced: 3.45,2.78,1.33,1.24,1.01,.567,.443,and .223.How many factors should Jack retain based on these eigenvalues?
A) 1
B) 2
C) 3
D) 5
E) 8

Question

Quizplus · Accepted Answer

The common rule for deciding how many factors to retain in factor analysis is to keep factors with eigenvalues greater than 1. Based on the given eigenvalues, Jack should retain the first five factors (3.45, 2.78, 1.33, 1.24, 1.01) as their eigenvalues are greater than 1.

Jack Is Performing a Factor Analysis on Twenty Items Relevant