When deciding how many components to retain, one criterion is to retain all those components whose...
Homework Answers
This statement is False.
Explanation:
According the criterion proposed by Kaiser (1960), only those components are retained whose eigenvalues are greater than 1. Using eigenvalues > 1 is only one indication of how many factors to retain. Other reasons include the scree test, getting a reasonable proportion of variance explained and (most importantly) substantive sense.
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When deciding how many components to retain, one criterion is to
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