Factor Analysis: Measures construct validity of the questionnaire. Interval scale data is used. Multi collinearity in factor analysis.

Nominal, ordinal, ratio and Scale type of data. Objective: to do data reduction by reducing the various variables in the CBBE pyramid to factors, one being dependent and the other 5 being dependent. Is the sample size adequate for me to make any sense out if the analysis? ----------------------------------------------------------------------------------------------------------------------------------------KMO should be bare minimum 0.5. (Significance: whether the factor analysis is significant or not) The factor (or the dimensions of CBBE for the referred case) could explain the variable (affordability) by 72.22%. Referring to the communalities table of the SPSS output.
Communalities Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .722 .452 .731 .945 .950 .914 .955 .799 .777

affordable freedom economical man's vehicle powerful jealous Ad comfort Safe threelegal

1.000 .789 Extraction Method: Principal Component Analysis. -----------------------------------------------------------------------------------------------------------------------------------------------------------

Eigen values are a measure to tell u how strong the values are. There shouldnt be a very high correlation between the different factors.

Total Variance Explained Initial Eigenvalues Component 1 2 3 4 5 6 7 8 9 10 Total 3.883 2.777 1.375 .945 .479 .292 .117 .068 .037 % of Variance 38.828 27.770 13.747 9.449 4.793 2.923 1.166 .680 .374 Cumulative % 38.828 66.598 80.346 89.795 94.588 97.511 98.677 99.356 99.730 100.000 Extraction Sums of Squared Loadings Total 3.883 2.777 1.375 % of Variance 38.828 27.770 13.747 Cumulative % 38.828 66.598 80.346

Rotation Sums o Total 3.841 2.429 1.764

% of Va

.027 .270 Extraction Method: Principal Component Analysis.

In the above table as the first three values (Eigen) are above one and hence are the factors. Therefore we can say that the no of variables (i.e. 10) have been reduced to 3 factors. Together the first three factors explain 80% of the variance.
Component Matrix(a) Component 1 affordable freedom economical man's vehicle powerful jealous Ad comfort Safe threelegal .176 -.136 -.107 .966 .951 .952 .971 -.322 -.069 2 .670 -.608 .820 -.036 .166 -.084 .096 .775 .735 3 .493 .254 .218 -.097 -.136 -.025 -.046 -.308 -.482 .814

.161 .319 Extraction Method: Principal Component Analysis. a 3 components extracted.

Correlation of factor 1 and the variable affordable is given by the coefficient alpha (highlighted) Affordable has the best correlation with the second factor so it has gone to that factor. The value highlighted should be above 0.6 so that it belongs to a certain factor and should be the highest value for different factors.

Rotated Component Matrix(a) Component 1 affordable freedom economical man's vehicle powerful jealous Ad comfort Safe threelegal .126 -.181 -.116 .970 .964 .945 .971 -.262 .010 2 .313 -.639 .604 -.064 .131 -.140 .024 .848 .881 3 .780 -.107 .594 -.006 .063 .030 .106 .101 -.044

.063 -.149 .874 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 5 iterations.

Now we check which variable values are greater than 0.6 and allocate them to various factors. (dont consider the ve sign) Factor Allocation Factor 1:, powerful, MV, Jealous, Ad : Macho Factor 2: Freedom, Economical, comfort, Safe: Utility Factor 3: Affordable, 3 legal: Value for Money. Construct validity of 75% is excellent. For Reliablity the statistic is Cronbacks Alpha. Test all the dimensions separately. Therefore as per the given case we have 3 dimensions.
Reliability Statistics (Factor 1) Cronbach's Alpha .973

N of Items 4

Reliability Statistics (Factor 2) Cronbach's Alpha .337

N of Items 4

Reliability Statistics (Factor 3) Cronbach's Alpha .641

N of Items 2

Reliability Statistics (Factor 2 sans freedom) Cronbach's Alpha .790

N of Items 3

Correlation and Regression Coefficient if correlation is Pearsons coefficient. Coefficient of regression to assess the impact is R square. B coefficient.

Miscellaneous Sample size calculation.