UP201301705 FACULTY OF ARTS UNIVERSITY OF PORTO MASTERS IN GEOGRAPHICAL INFORMATION SYSTEMS AND SPATIAL PLANNING
Statistical Analysis for the Portuguese Living Conditions Indicators By SPSS
Statistical Analysis for the Portuguese Living Conditions Indicators 2014
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Index:
2 1. Introduction 2 2. Interpreting Output from SPSS 2 2.1 Descriptive Statistics 3 2.2. The Correlation Matrix 4 2.3. Kaiser-Meyer-Olkin (KMO) and Bartlett's Test 5 2.4. Communalities 5 2.5. Total Variance Explained: 6 2.6. Scree Plot 7 2.7. Factor Matrix 7 2.8. The goodness-of-fit Table 8 2.9. Rotated Factor Matrix 8 3. Conclusion Statistical Analysis for the Portuguese Living Conditions Indicators 2014
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1. Introduction: In this report, I will review an analysis method for the concept of living conditions and the way to measure it. Specifically, we intend to investigate whether it is possible to combine all indicators to compute a scale of living conditions or, on the contrary, if we have a concept that is multidimensional unfolding into different aspects that require more than one scale. So we will analyze the data and calculate composite indices assessing their reliability. And also I will present some descriptive analyzes of the variables that i have created. For analyzing the given data I will use Factor Analysis method to find the factors among observed variables. In other words, because the data contains many variables, we will use factor analysis to reduce the number of variables by grouping the variables which have the similar characteristics together. With factor analysis we can produce a small number of factors from a large number of variables which is capable of explaining the observed variance in the larger number of variables. The reduced factors can also be used for further analysis. There are three stages in factor analysis: First, a correlation matrix is generated for all the variables. A correlation matrix is a rectangular array of the correlation coefficients of the variables with each other. Second, factors are extracted from the correlation matrix based on the correlation coefficients of the variables. Third, the factors are rotated in order to maximize the relationship between the variables and some of the factors.
2. Interpreting Output from SPSS: 2.1. Descriptive Statistics: The first output from the analysis is a table of descriptive statistics for all the variables under investigation. Typically, the mean, standard deviation and number of respondents (N) who participated in the investigation are given. Looking at the mean, one can conclude that the age group in 1998 is the most important variable that influences the living condition of the householder. It has the highest mean of 3.27. Statistical Analysis for the Portuguese Living Conditions Indicators 2014
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2.2. The Correlation matrix: The next output from the analysis is the correlation coefficient. A correlation matrix is simply a rectangular array of numbers which gives the correlation coefficients between a single variable and every other variables in the investigation. The correlation coefficient between a variable and itself is always 1, hence the principal diagonal of the correlation matrix contains 1s. The correlation coefficients above and below the principal diagonal are the same. The coefficients of correlation express the degree of linear relationship between the row and column variables of the matrix. The closer to zero the coefficient, the less the relationship; the closer to one, the greater the relationship. A negative sign indicates that the variables are inversely related.
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2.3. Kaiser-Meyer-Olkin (KMO) and Bartlett's Test: Measures strength of the relationship among variables
The KMO measures the sampling adequacy which should be greater than 0.5 for a satisfactory factor analysis to proceed. If any pair of variables has a value less than this, consider dropping one of them from the analysis. The off-diagonal elements should all be very small (close to zero) in a good model. Looking at the table below, the KMO measure is 0.866.
There is no significant answer to question How many cases do I need to factor analysis?, and methodologies differ. A common rule is to suggest that a researcher has at least 10-15 participants per variable. Fiedel (2005) says that in general over 300 cases for sampling analysis is probably adequate. There is universal agreement that factor analysis is inappropriate when sample size is below 50. Kaisen (1974) recommend 0.5 as minimum (barely accepted), values between 0.7-0.8 acceptable, and values above 0.9 are superb.
Bartlett's test is another indication of the strength of the relationship among variables. This tests the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is matrix in which all of the diagonal elements are 1 and all off diagonal elements are 0. We want to reject this null hypothesis. From the same table, we can see that the Bartlett's test of sphericity is significant That is, its associated probability is less than 0.001. The significance level is small enough to reject the null hypothesis. This means that correlation matrix is not an identity matrix.
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2.4. Communalities: The next item from the output is a table of communalities which shows how much of the variance in the variables has been accounted for by the extracted factors. For instance over 99.9% of the variance in age group in 1998 is accounted for while 2.3% of the variance in householder sex is accounted for.
2.5. Total Variance Explained: The next item shows all the factors extractable from the analysis along with their eigenvalues, the percent of variance attributable to each factor, and the cumulative variance of the factor and the previous factors. Here we notice that the first factor accounts for 6.631% of the variance, the second 26.839% and the third 34.511% and the fourth 39.398% and fifth 42.086%. All the remaining factors are not significant. ` Statistical Analysis for the Portuguese Living Conditions Indicators 2014
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2.6. Scree Plot: The scree plot is a graph of the eigenvalues against all the factors. The graph is useful for determining how many factors to retain. The point of interest is where the curve starts to flatten. It can be seen that the curve begins to flatten after factor 7. We note also that from factor 8 has an eigenvalue of less than 1, so only seven factors have been retained.
Eigenvalue: The standardized variance associate with a particular factor. The sum of the eigenvalues cannot exceed the number of items in the analysis, since each item contributes one to the sum of variances.
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2.7. Factor Matrix: The table shows the loadings of the 28 variables on the five factors extracted. The higher the absolute value of the loading, the more the factor contributes to the variable. The gap on the table represent loadings that are less than 0.5, this makes reading the table easier. We suppressed all loadings less than 0.5.
As we can see the table displays the format of an unrotated factor matrix. The columns define the factors; the rows refer to variables. In the intersection of row and column is given the loading for the row variable on the column factor The third factor is associated with household can fund to keep warm habitation and Household can fund worn or damaged furniture replacement indicators. The second factor corresponds most strongly to 19 from 28 of the living conditions indicators more than the other 4 factors.
2.8. The goodness-of-fit table: Gives an indication of how well our 5 factors reproduce the variables' or items' variance covariance matrix. Here, the test shows that the reproduced matrix is significantly different from the observed matrix.
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2.9. Rotated Factor Matrix: The idea of rotation is to reduce the number factors on which the variables under investigation have high loadings. Rotation does not actually change anything but makes the interpretation of the analysis easier.
As we see that each factor has several indictors which only loading in it greater than other factors.
The Factor Transformation Matrix displays the correlations among the factors prior to and after rotation.
3. Conclusion: As a general conclusion, we can say we have five factors accounting for 42.086% of the variance in our 28 items. In the Rotated Factor Matrix table we see clear factor structure displayed; meaning, each item loads predominantly on one factor. For instance, the first four items load virtually exclusively on Factor 1. Furthermore, if we look at the communalities we see that all the items displayed a communality of 0.40 or greater, with some exceptions which are a little lower than we would like and given that each factor has other items which load substantially on it, we may choose to remove them from further analysis or measurement.
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