The following exercises seek to determine what underlying structure exists among the following variables in profile-a.sav: highest degree earned (degree), hours worked per week (hrs1), job satisfaction (satjob), years of education (educ), hours per day watching TV (tvhours), general happiness (happy), degree to which life is exciting (life), and degree to which the lot of the average person is getting worse (anomia5).

1. The following output was generated for the initial analysis. Varimax rotation was utilized.

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Chapter 9 Factor Analysis

a. Assess the eigenvalue criterion. How many components were retained? Is the eigenvalue ap- propriate, considering the number of factors and the communalities?

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Chapter 9 Factor Analysis

1. Assess the variance explained by the retained components. What is the total variability ex- plained by the model? Is this amount adequate?
2. Assess the scree plot. At which component does the plot begin to level off?
3. Assess the residuals. How many residuals exceed the 0.05 criterion?
4. Having applied the four criteria, do you believe the number of components retained in this analy- sis is appropriate? If not, what is your recommendation?