In stage 2 the number of factors to be extracted from the
data is determined. The three most used techniques are the
Kaiser 1 rule that is extracting the number of factors with
an Eigenvalue higher than 1, the Scree test, and parallel
analysis (Hayton et al. 2004). The Kaiser 1 rule has the
tendency to overestimate the number of factors; the Scree
test is vulnerable to subjective interpretation on where the
break in the plot is. Parallel analysis is considered the most
accurate method to determine the number of factors to
retain. We used both the Kaiser 1 rule to determine the
maximum number of factors and parallel analysis for the
exact number, following the guidelines and syntax provided
by Hayton et al. (2004).