Factor Analysis Output KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Appro#. $"i-Square Bartlett s !

est of (f Sp"ericity Sig. Interpretation* 1+ KMO measure , &.5 -ence its possi.le to e#tract relia.le factors from t"e gi/en set of /aria.les. )+ Bartlett0s test of sp"ericity* 1ull "ypot"esis* correlation matri# is identity matri# 2correlation is not significant+ Alternate "ypot"esis* correlation matri# is not an identity matri# 2correlation is significant+ 3+ p-/alue 4 &.&55 -ence t"e correlation is significant. 6e5 7actor Analysis can .e performed. Component Score Coefficient Matrix $omponent 1 ) Score on 8isk .&93 -.'%9 A/erseness Score on 8eturns .):9 -.&)) Score on 6nsurance .&)& .'%' $o/ers Score on !a# 8e.ate .19: -.&3) Score on Maturity !ime .31: .)33 Score on $redi.ility of .3%9 -.3&: 7inancial 6nstitution Score on ;asy .3:: .&%9 Accessi.ility

.591 %&.&&' )1 .&&&

;#traction Met"od* <rincipal $omponent Analysis. 8otation Met"od* =arima# >it" Kaiser 1ormali?ation. $omponent Scores. Interpretation $omponent Score coefficient matri# 27actor score coefficient matri#+ 7actor score for factor 1 @

&.&93 &.):9 2stdardi? 2stdardi? &.&)2stdardi &.19:2stdardi &.31:2stdardi &.3%92stdardi &.3::2stdardi ed score ed score ?ed score of ?ed score of ?ed score of ?ed score of ?ed score of of A1+ B of A)+B A3+B A'+B A5+B A9+B A:+ Similarly calculate for factor ). $"eck t"e last columns of t"e data s"eet for t"e factor scores of factors 1 C ). Component Matrixa $omponent 1 ) Score on 8isk -.1:9 .:53 A/erseness Score on 8eturns .5): .19& Score on 6nsurance .335 -.:&: $o/ers Score on !a# 8e.ate .3&9 .1)5 Score on Maturity !ime .:95 -.19% Score on $redi.ility of .5:& .933 7inancial 6nstitution Score on ;asy .:93 .&': Accessi.ility ;#traction Met"od* <rincipal $omponent Analysis. a. ) components e#tracted.
2

Interpretation $alculation of 7actor Doading* $olumn 1* !"is is t"e correlation .et>een t"e factor score for factor 1 and eac" /aria.le. 7or eg* -&.1:9 is t"e correlation .et>een t"e factor score column for factor 1 and t"e column A1 &.5): is t"e correlation .et>een t"e factor score column for factor 1 and t"e column A) ---&.:53 is t"e correlation .et>een t"e factor score column for factor ) and t"e column A1 &.19& is t"e correlation .et>een t"e factor score column for factor ) and t"e column A) --$alculating eigen /alues* 7or factor 1* 2-&.1:9+) B 2&.5):+) B 2&.335+) B 2&.3&9+) B 2&.:95+) B 2&.5:+) B2&.:93+) @ ).&5' Similarly for factor )* -Total Variance Explained $omponent 6nitial ;igen/alues ;#traction Sums of Squared 8otation Sums of Squared Doadings Doadings !otal E of $umulati/ !otal E of $umula !otal E of $umulati/e E =ariance eE =ariance ti/e E =arianc e 1 ).&5' )9.3'9 )9.3'9 ).&5' )9.3'9 )9.3'9 ).&1& )%.:&% )%.:&% ) 1.551 )).19& 51.5&9 1.551 )).19& 51.5&9 1.599 )).:9% 51.5&9 3 .9:& 13.%5: 95.393 ' .%'% 1).1&9 ::.':) 5 .:11 1&.151 %:.9)) 9 .'9& :.&&3 9'.9)9 : .3:9 5.3:' 1&&.&&& ;#traction Met"od* <rincipal $omponent Analysis.

Interpretation
3

<ercentage of total /ariation e#plained .y factor 1 is )9.3'9EF .y factor ) is )).19E !otal /ariation e#plained .y .ot" t"e factors put toget"er @ 51.5&9E Communalities 6nitial

;#traction

Score on 8isk 1.&&& .59% A/erseness Score on 8eturns 1.&&& .3&' Score on 6nsurance 1.&&& .91) $o/ers Score on !a# 8e.ate 1.&&& .111 Score on Maturity !ime 1.&&& .9)' Score on $redi.ility of 1.&&& .:)5 7inancial 6nstitution Score on ;asy 1.&&& .931 Accessi.ility ;#traction Met"od* <rincipal $omponent Analysis. Interpretation <ercentage of /ariation in eac" /aria.le e#plained .y .ot" t"e factors put toget"er. ;g* &.59% is t"e percentage of /ariation in t"e /aria.le 8isk a/erseness e#plained .y .ot" t"e factors put toget"er. 6e Gfrom component matri#5 2-&.1:9+) B 2&.:53+) @ &.59%H --ence to differentiate t"e factor 1 from factor )5 carrying out rotation*

otated Component Matrixa $omponent 1 ) Score on 8isk .&5: -.::1 A/erseness Score on 8eturns .551 .&&'
4

Score on 6nsurance .1&9 .::5 $o/ers Score on !a# 8e.ate .33) -.&): Score on Maturity !ime .9:1 .'1: Score on $redi.ility of .:3) -.'35 7inancial 6nstitution Score on ;asy .::1 .19) Accessi.ility ;#traction Met"od* <rincipal $omponent Analysis. 8otation Met"od* =arima# >it" Kaiser 1ormali?ation. a. 8otation con/erged in 3 iterations. Interpretation $ut off point is &.5. 7actor1 2see $olumn1+* Ma#imum factor loadings 2magnitude only+are* .::12Score on ;asy Accessi.ility+F &.:3)2Score on $redi.ility of 7inancial 6nstitution+F &.9:12Score on Maturity !ime+F &.5512Score on 8eturns+ 7actor) 2$olumn)+* Ma#imum factor loadings 2magnitude only+are* &.::52Score on 6nsurance $o/ers+F &.::12Score on 8isk A/erseness+ -1o>5 1ame t"e factors* eg* 1+ <ercei/ed /alue of ser/iceF )+ Security factor