Cumulative Percentage of Variance and Eigenvalue > 1 Rule
Cumulative percentage of variance (criterion) is another area of disagreement in the factor analysis approach, particularly in different disciplines, for example, the natural sciences, psychology, and the humanities. No fixed threshold exists, although certain percentages have been suggested. According to Hair et al. in the natural sciences, factors should be stopped when at least 95% of the variance is explained. In the humanities, the explained variance is commonly as low as 50-60%. The example below in Table 4 demonstrates a
cumulative percentage of variance of 40.6% and a total of 7 components (factors) having an eigenvalue > 1.
Cumulative Percentage of Variance and Eigenvalue > 1 Rule
Cumulative percentage of variance (criterion) is another area of disagreement in the factor analysis approach, particularly in different disciplines, for example, the natural sciences, psychology, and the humanities. No fixed threshold exists, although certain percentages have been suggested. According to Hair et al. in the natural sciences, factors should be stopped when at least 95% of the variance is explained. In the humanities, the explained variance is commonly as low as 50-60%. The example below in Table 4 demonstrates a
cumulative percentage of variance of 40.6% and a total of 7 components (factors) having an eigenvalue > 1.
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