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Factor analysis
Method for the reduction of dimensions; reduced (latent) dimensions are based on manifest variables; n-dimensional space is reduced to an m-dimensional space (m<n)

Exploratory and confirmatory
Exploratory: examines and explores the interdependence among observed variables; structural theory development. (no theory)
Confirmatory: tests specific hypotheses about the factorial structure; requires knowledge and theory, also large sample sizes (testing theory)

Exploratory.
Principal component analysis and factor analysis
Principal component: descriptive method for data reduction; components are uncorrelated; accounts for the variance of data
Factor analysis: a statistical model; factors may be or not be correlated; accounts for pattern of correlation

Process
Method:
- variable selection and calculation of the correlation matrix
- extraction of factors
- determine commonalities
-numbers of factors
-factor rotation and factor interpretation
-determine factor values

Kyser-Meyer-Olkin criteria (measure of sampling adequacy MSA) and the anti-image correlation.
Rule of thumb: MSA > 0.5.
90 degrees means no correlation
Commonalities: 0=no explanation of the variables by the mutual factors. 1=complete explanation of the variables by the mutual factors
Eigenvalues / Kaiser criterion: factor explains more than the variable (Eigenvalue >1)
     
 
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