Improving the Use of Parallel Analysis by Accounting for Sampling Variability of the Observed Correlation Matrix

Xia, Yan; Zhou, Xinchang

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https://hdl.handle.net/2142/123583 Copy

Description

Title

Improving the Use of Parallel Analysis by Accounting for Sampling Variability of the Observed Correlation Matrix

Author(s)

• Xia, Yan
• Zhou, Xinchang

Issue Date

2024-07-21

Keyword(s)

• parallel analysis
• dimensionality assessment
• factor analysis
• sample size

Abstract

Parallel analysis has been considered one of the most accurate methods for determining the number of factors in factor analysis. One major advantage of parallel analysis over traditional factor retention methods (e.g., Kaiser’s rule) is that it addresses the sampling variability of eigenvalues obtained from the identity matrix, representing the correlation matrix for a zero factor model. The present study argues that we should also address the sampling variability of eigenvalues obtained from the observed data, such that the results would inform practitioners of the variability of the number of factors across random samples. Thus, this study proposes to revise the parallel analysis to provide the proportion of random samples that suggest k factors (k = 0, 1, 2, …) rather than a single suggested number. Simulation results support the use of the proposed strategy, especially for research scenarios with limited sample sizes where sample fluctuation is concerning.

Type of Resource

dataset

Language

eng

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