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KMO and Bartlett's Test in Factor Analysis

The document discusses Kaiser-Meyer-Olkin (KMO) Test and Bartlett's Test of Sphericity, which are measures of sampling adequacy used in factor analysis. The KMO Test measures how suited a dataset is for factor analysis, with values closer to 1 indicating greater suitability. Bartlett's Test checks if the variables are unrelated (sphericity assumed), with significance values below 0.05 indicating factor analysis is suitable. The document also mentions exploratory factor analysis (EFA) versus confirmatory factor analysis (CFA) and different rotation techniques used in factor analysis like varimax and oblique rotations.

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Vikas Rathore
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23 views2 pages

KMO and Bartlett's Test in Factor Analysis

The document discusses Kaiser-Meyer-Olkin (KMO) Test and Bartlett's Test of Sphericity, which are measures of sampling adequacy used in factor analysis. The KMO Test measures how suited a dataset is for factor analysis, with values closer to 1 indicating greater suitability. Bartlett's Test checks if the variables are unrelated (sphericity assumed), with significance values below 0.05 indicating factor analysis is suitable. The document also mentions exploratory factor analysis (EFA) versus confirmatory factor analysis (CFA) and different rotation techniques used in factor analysis like varimax and oblique rotations.

Uploaded by

Vikas Rathore
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Kaiser-Meyer-Olkin (KMO) Test is a measure of how suited your data is for Factor Analysis.

The test
measures sampling adequacy for each variable in the model and for the complete model. The statistic is
a measure of the proportion of variance among variables that might be common variance. The lower the
proportion, the more suited your data is to Factor Analysis.

FACTOR ANALYSIS

Sadhna

Factor Analysis is a commonly used data/ variable reduction technique. This multivariate statistical
technique is used for three primary reasons:

 Reduce the number of variables, from large to small

 Establish underlying dimensions between measured variables and constructs and

 Provide construct validity evidence

Some of the points, of Factor Analysis, discussed in class include the types of factor analysis, i.e,
Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA). As the names suggest, EFA is
used where the study is being conducted with no pre-conceived theories or expectations while CFA is
used where the study is being conducted to test a proposed theory.

While the uses of Factor Analysis including a) interdependency and pattern delineation; b) data
reduction; c) structure; d) classification; e) scaling; and f) hypothesis testing, have been discussed in
detail in the class, one aspect in Factor Analysis that needs mention in detail includes KMO & Bartlett’s
Test of Sphericity.

KMO & Bartlett’s Test of Sphericity is a measure of sampling adequacy that is recommended to check the
case to variable ratio for the analysis being conducted. In most academic and business studies, KMO &
Bartlett’s test play an important role for accepting the sample adequacy. While the KMO ranges from 0
to 1, the world-over accepted index is over 0.6. Also, the Bartlett’s Test of Sphericity relates to the
significance of the study and thereby shows the validity and suitability of the responses collected to the
problem being addressed through the study. For Factor Analysis to be recommended suitable, the
Bartlett’s Test of Sphericity must be less than 0.05.

Another important aspect that needs mention is the Rotated Component Matrix. While deciding how
many factors one would analyze is whether a variable might relate to more than one factor. Rotation
maximizes high item loadings and minimizes low item loadings, thereby producing a more interpretable
and simplified solution. There are two common rotation techniques - orthogonal rotation and oblique
rotation. While orthogonal varimax rotation that produces factor structures that are uncorrelated,
oblique rotation produces factors that are correlated. Irrespective of the rotation method used, the
primary objectives are to provide easier interpretation of results, and produce a solution that is more
parsimonious.

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