Factor Analysis Types – Confirmatory & Exploratory YouTube Lecture Handouts

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Factor Analysis: 2 Types – Confirmatory & Exploratory


Exploratory Factor Analysis

  • Measure underlying factors affecting the variables in a data structure without setting any predefined structure to the outcome

  • Not based on prior theory

Confirmatory Factor Analysis (2 Types)

  • Confirm predefined components already explored

  • Implemented for reconfirming the effects and possible correlations existing between a set of predetermined factors and variables

  • Larger sample size

  • Produces inferential statistics

Traditional Approach

  • Based on principle factor analysis rather than common factor analysis

  • Knows more about factor loading

  • Factor loading - Relation of each variable to the underlying factor. Output of a simple factor analysis looking at indicators of wealth, with just six variables and two resulting factors

  • 6 variables: Income, education, occupation, house value, public parks and crimes

  • 2 factors: individual socioeconomic status and neighborhood socioeconomic status

  • Factor Score – if value of variables are given then factor values can be predicted

Structural Equation Modeling

  • To formulate a relationship between a set of variables and factors and measures causal relationship using linear equation model.

  • Can be used for confirming result under scrutiny and testing predicted outcomes