Factor analysis example

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Factor analysis example
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Where regression can go wrong

• An example
• A financial company what was most important to
  respective/potential clients
• 9C Now I am going to read out a number of
  products and services that other people have said
  are important to them in their ideal trustee
  services organisation. I would like you to rate
  how important each one is to you on a scale of 1
  to 10 where 1 means "not at all important" and 10
  means "extremely important". So, how important
  to you is .....................................?
• READ EACH ATTRIBUTE. RECORD ONE RESPONSE ONLY
  FOR EACH ATTRIBUTE
• Provide a one stop shop covering all your
  financial needs like mortgages and investments,
  as well as wills, trusts and power of attorney
• Have your product details accessible by computer
• Have branches or offices you can visit
• Have mobile advisors that come to you at your
  convenience
• Have simple and easy to understand products
• Are available by phone outside normal business
  hours
• Have a dedicated service person for you to deal
  with
• Conduct regular, scheduled reviews of your
  products and services with them
• Provide mix and match options that can be
  tailored to your changing needs

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Example 2 factors

• Lets perform a factor analysis on this data to
  see how peoples needs tend to associate and if
  they are meaningful
• Code
• proc factor data service nfactor 2 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run
• proc factor data service nfactor 3 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run
• proc factor data service nfactor 4 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run

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See output from SAS

• Lets perform a factor analysis on this data to
  see how peoples needs tend to associate and if
  they are meaningful
• Code
• proc factor data service nfactor 2 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run
• proc factor data service nfactor 3 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run
• proc factor data service nfactor 4 fuzz.4
  rotatevarimax
• var Q56a1-Q56a9
• run