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rotation

By ARUNIMA CHAKRABORTY | Oct 06, 2016 10:25AM CEST

how can one decide how many factors to rotate? is it always two? based on what the number of factors to be rotated is decided?

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By Sebastien | Oct 07, 2016 11:58AM CEST | XLSTAT Agent

Dear Arunima,

The total variation explained after the rotation is the same, but the contributions are not the same from the individual factors.
It is recommanded first to keep only factors that are considered as relevant then it can be followed by a rotation of the factors that were retained.

A classical approach is to use the cumulative sum of eigenvalues to select the number of principal components to take. This plot is the fraction of total variance retained vs. index of eigenvalues. The plot will then provide a good indication of when you hit the point of diminishing returns (meaning little variance is gained by retaining additional eigenvalues).

Hope this helps.

Regards,

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