Factor Analysis in Individual Differences Research: The Basics

1. Factor Analysis in Individual Differences Research: The Basics R. Chris Fraleyhttp://www.yourpersonality.net/psych350/fall2012/

2. Data from over 1000 people in the National Election Study

3. To summarize, there are correlations among the social and political attitudes that people hold. • People who have favorable attitudes towards abortion, for example, are also more likely than others to have favorable attitudes towards the women’s movement, gays in the military, and decreasing defense spending.

4. Why do these correlations exist? • One of the assumptions often made in personality psychology is that these diverse attitudes tend to covary or hang together across people because they are organized by a common trait or attitude (latent factors).

5. Increase defense spending No gays in the military Abortion Women’s movement - - + + Latent factor

6. Thus, one of the goals of many research studies is to investigate the latent factors that help explain these statistical patterns. • One of the more commonly used tools for doing so is factor analysis. • In short, factor analysis is a statistical method for explaining the correlations among measured variables with respect to a smaller number of unobserved variables (sometimes called factors or traits).

7. Factor analysis is used in many areas of behavioral science. • To understand the latent factors that underlie political attitudes • To understand the latent factors that underlie performance in spatial, verbal, and speeded cognitive tests • To understand the factors underlying people’s musical classifications • To understand the latent factors that underlie personality descriptors (e.g., the Big Five personality traits)

8. One of the big questions that motivates a lot of factor analytic research is: How many latent factors are needed to parsimoniously explain the associations among measured variables? Var 1 Var 2 Var 1 Var 2 Var 3 Var 4 Var 3 Var 4

9. Mathematical decomposition of the correlation matrix (eigenvalue-eigenvector decomposition) • In practice, this amounts to an attempt to reproduce as much of the correlation matrix as possible with as few latent factors as possible. • Each latent factor has a corresponding eigenvalue. An eigenvalue can be conceptualized as representing information.

10. Performing the decomposition in SPSS

11. Select the variables you wish to analyze and shoot them over to the “variables” box.

12. Next, click the Extraction button. Check the option labeled “Scree plot” then click Continue. When you’re back at the main menu, press “ok” to run the analysis.

14. Each successive factor buys us less and less information. Where is the tipping point? Notice that the first factor has a large eigenvalue. The next few have smaller eigenvalues.

15. Elbow rule Methods for optimizing parsimony (using as few factors as possible) with maximum information (being able to reproduce the original correlation matrix)

16. Eigenvalue > 1 rule

17. What do the latent factors represent? • What do the latent factors represent? How should we interpret them? • To answer this question it is useful to extract the factors and find a useful way to position them in multivariate space.

18. Variable 2 Variable 1 Peoples’ scores on two variables in a two-dimensional space.

19. Variable 2 Variable 1 Notice that the sets of scores are highly correlated. In fact, there is one primary factor that underlies these scores.

20. Variable 2 Variable 1 This specific orientation of the factor maximizes the variance of the data points (or the length of the line) compared to alternatives. But where do we position that factor? There are clearly many ways to “rotate” an axis is this two-dimensional space.

21. Variable 2 Variable 1 Notice that it is possible to place another factor through the data points. This factor is smaller than the original one.

22. Variable 2 Variable 1 The process of extracting additional factors and placing them in the multivariate space can be challenging. Varimax rotation: Each additional factor is orthogonal (90-degrees) to the previous. Moreover, the axes are placed such that the variance with respect to each factor is maximized.

23. The variance maximizing property of varimax rotation is better illustrated with a more complex example—a situation in which two factors carry large amounts of information—and by pulling the axes out and laying them side-by-side.

24. It is also possible to maximize variance while allowing the factors to correlate with one another. These methods are sometimes called oblique rotations. SPSS uses a method called direct oblimin.

25. We can represent people in this factor space. In fact, once the location of the factors is specified, we can compute for each person a factor score—his or her score with respect to each factor. We can also represent the observed variables in this factor space. We do so with factor loadings. Variables that “load” highly on or correlate highly with a factor are typically used to interpret the meaning of the latent factors.

26. Now let’s instruct the program to specifically select 3 factors. In the main menu, click the Extraction button. Select the radio button labeled “fixed number of factors” and enter 3 into the textbox. Also, for Method, be sure to choose Principal Axis Factoring. Press continue

27. From the main menu, click the Rotation button. Select the option labeled “Varimax.” Also, check the option called “Loading Plots(s)” Continue

28. From the main menu, click the Options button. Choose “exclude cases pairwise” Check “Sorted by size”

29. The first factor seems to reflect individual differences in anti-abortion, against gays in the military, in favor of defense spending, and against environmental spending The second factor seems to reflect individual differences in support of the women’s movement and labor unions. The third factor seems to reflect individual differences in favoring the death penalty, decreasing welfare spending, privatizing health care, and decreasing financial aid for college students

30. Run the analysis again with 2 factors

31. The first factor seems to reflect individual differences in being against the women’s movement, decreasing welfare spending, opposition to labor unions, favoring the death penalty, favoring the privatization of health care, decreasing student aid. The second factor seems to reflect individual differences in anti-abortion, anti-gays in the military, increased defense spending, decreased environmental spending

32. Factor 2 Increase defense spending No gays in military Environmental spending Privatize health care Against death penalty Decrease welfare spending Decrease student aid Factor 1 Immigrants Labor unions Women’s movement Abortion

34. Correlations between factors Regression slopes where Variable = b1*Factor 1 + b2*Factor 2 Correlations between Factors and Variables

35. Correlations between factors Regression slopes where Variable = b1*Factor 1 + b2*Factor 2 Correlations between Factors and Variables

36. Correlated Factors (Direct Oblimin) Uncorrelated Factors (Varimax rotation) Notice that, in this case, the interpretation of the results is not dependent upon whether we assumed correlated or uncorrelated factors. That will not always be the case.

37. Caveats concerning factor analysis • The method is often used as a method for reducing the number of measured variables into a smaller number of composites. Utilitarian. • Sometimes the factors are reified—that is, treated as something real. The factors may or may not represent anything real; the answer to that question lies beyond the scope of factor analysis itself. • There is no correct rotation. Rotation choices often need to be made to balance research needs.