Discussion
How many factors can be retained for rotation using Guttman and Scree criteria ?
Answer: B
Two factors can be retained.
The Guttman-Kaiser criterion retains components with eigenvalues greater than 1, the variance of a single standardized variable. Only the first two eigenvalues, 3.2 and 2.4, exceed 1; the third is 0.54.
The scree criterion looks for the point where the plot of eigenvalues levels off. Here the values fall steeply from 3.2 to 2.4 and then drop to 0.54, after which they stay nearly flat (0.42, 0.41, 0.39, 0.37, 0.27), so the elbow also comes after the second component. Both criteria agree, so 'one', 'six' and 'insufficient information' are wrong.
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