In this example, principal components analysis is performed on a correlation matrix for 21 numeric variables. This reduces the variables to 7 factors using a minimum eigenvalue of 1. The Scree Plot supports limiting the number of factors to 7 by showing how the eigenvalues (and thus the explained variance) level off at 7 or above.
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Parameterize a Factor Analysis as follows:
- Available Matrices — Customer_Analysis_Matrix
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Selected Variables
- income
- age
- years_with_bank
- nbr_children
- female
- single
- married
- separated
- ccacct
- ckacct
- svacct
- avg_cc_bal
- avg_ck_bal
- avg_sv_bal
- avg_cc_tran_amt
- avg_cc_tran_cnt
- avg_ck_tran_amt
- avg_ck_tran_cnt
- avg_sv_tran_amt
- avg_sv_tran_cnt
- cc_rev
- Analysis Method — Principal Components
- Matrix Type — Correlation
- Minimum Eigenvalue — 1
- Invert signs if majority of matrix values are negative — Enabled
- Rotation Options — None
- Factor Variables — Enabled
- Threshold Percent — 1
- Long Report — Not enabled
- Run the analysis.
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Click Results when complete.
For this example, the Factor analysis generated the following pages. A single click on each page name populates the Results page with the item.
Factor Analysis Report Number of Variables 21 Minimum Eigenvalue 1 Number of Factors 7 Matrix Type Correlation Rotation None Execution Summary 6/20/2004 1:55:02 PM Getting Matrix 6/20/2004 1:55:02 PM Principal Components Analysis Running...x 6/20/2004 1:55:02 PM Creating Report Eigenvalues Factor 1 4.292 Factor 2 2.497 Factor 3 1.844 Factor 4 1.598 Factor 5 1.446 Factor 6 1.254 Factor 7 1.041 (Factor 8) .971 (Factor 9) .926 (Factor 10) .871 (Factor 11) .741 (Factor 12) .693 (Factor 13) .601 (Factor 14) .504 (Factor 15) .437 (Factor 16) .347 (Factor 17) .34 (Factor 18) .253 (Factor 19) .151 (Factor 20) .123 (Factor 21) 7.01E-02 Principal Component Loadings Variable Name Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6 Factor 7 age 0.2876 -0.4711 0.1979 0.2615 0.2975 0.3233 -0.2463 avg_cc_bal -0.7621 0.0131 0.1628 -0.1438 0.3508 -0.1550 -0.0300 avg_cc_tran_amt 0.3716 -0.0318 -0.1360 0.0543 -0.1975 0.0100 0.0971 avg_cc_tran_cnt 0.4704 0.0873 -0.4312 0.5592 -0.0241 0.0133 0.0782 avg_ck_bal 0.5778 0.0527 -0.0981 -0.4598 0.0735 -0.0123 -0.0542 avg_ck_tran_amt 0.7698 0.0386 -0.0929 -0.4535 0.2489 0.0585 0.0190 avg_ck_tran_cnt 0.3127 0.1180 -0.1619 -0.1114 0.5435 0.1845 0.0884 avg_sv_bal 0.3785 0.3084 0.4893 0.0186 -0.0768 -0.0630 0.0517 avg_sv_tran_amt 0.4800 0.4351 0.5966 0.1456 -0.0155 0.0272 0.1281 avg_sv_tran_cnt 0.2042 0.3873 0.4931 0.1144 0.2420 0.0884 -0.0646 cc_rev 0.8377 -0.0624 -0.1534 0.0691 -0.3800 0.1036 0.0081 ccacct 0.2025 0.5213 0.4007 0.3021 0.0499 -0.1988 0.1733 ckacct 0.4007 0.1496 -0.4215 0.5497 0.1127 -0.0818 -0.0086 female -0.0209 0.1165 -0.1357 0.3119 0.1887 -0.2228 -0.3438 income 0.6992 -0.2888 0.1353 -0.2987 -0.2684 0.0733 0.0310 married 0.0595 -0.7702 0.2674 0.2434 0.1945 0.0873 0.2768 nbr_children 0.2560 -0.4477 0.1238 -0.0895 -0.0739 -0.5642 0.0898 separated 0.3030 0.0692 0.0545 -0.0666 -0.0796 -0.5089 -0.6425 single -0.2902 0.7648 -0.3004 -0.2010 -0.2120 0.2527 0.0360 svacct 0.4365 0.1616 -0.2592 -0.1705 0.6336 -0.1071 0.0318 years_with_bank 0.0362 -0.0966 0.2120 0.0543 -0.0668 0.5507 -0.5299