Tabachnick and Fidell10 recommended inspecting the correlation matrix (often termed Factorability of R) for correlation coefficients over 0.30.
Hair et al. (1995) categorised these loadings using another rule of thumb as ±0.30=minimal, ±0.40=important, and ±.50=practically significant.9 If no correlations go beyond 0.30, then the researcher should reconsider whether factor analysis is the appropriate statistical method to utilise.9,10 In other words a factorability of 0.3 indicates that the factors account for approximately 30% relationship within the data, or in a practical sense, it would indicate that a third of the variables share too much variance, and hence becomes impractical to determine if the variables are correlated with each other or the dependent variable (multicollinearity).
Tabachnick and Fidell10 recommended inspecting the correlation matrix (often termed Factorability of R) for correlation coefficients over 0.30.
Hair et al. (1995) categorised these loadings using another rule of thumb as ±0.30=minimal, ±0.40=important, and ±.50=practically significant.9 If no correlations go beyond 0.30, then the researcher should reconsider whether factor analysis is the appropriate statistical method to utilise.9,10 In other words a factorability of 0.3 indicates that the factors account for approximately 30% relationship within the data, or in a practical sense, it would indicate that a third of the variables share too much variance, and hence becomes impractical to determine if the variables are correlated with each other or the dependent variable (multicollinearity).
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