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Factor Retention Decisions in Exploratory Factor Analysis: a Tutorial on Parallel Analysis

by James C. Hayton, David G. Allen, Vida Scarpello
Organizational Research Methods ()

Abstract

The decision of how many facors to retain is a critical component of exploratory factor analysis. Evidence is presented that parallel analysis is one of the most ac- curate factor retention methods while also being one of the most underutilized in management and organizational research. Therefore, a step-by-step guide to per- forming parallel analysis is described, and an example is provided using data from the Minnesota Satisfaction Questionnaire. Recommendations for making factor retention decisions are discussed. Keywords:

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