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Manualizing Factor Analysis of Likert Scale Data

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  • Nadeem Uz Zaman, Zainab Bibi, Sana Ur Rehman Sheikh, Abdul Raziq

    (Balochistan University of Information Technology, Engineering and Management Sciences)

Abstract

Despite the academic value of factor analysis (FA) on Likert scale data, its statistical legality has been relentlessly questioned by professional statisticians. This article reviews relevant literature and proposes a statistically appropriate method of getting most out of FA on Likert scale. The review shows that a larger sample size is an important consideration in improving the appropriateness of FA on LS as it improves the solution in terms of normality, communalities and loadings. Further, a 7-9 point or greater scale to account for normality, an alpha level of 0.01 or 0.005, polychoric correlation instead of Pearson's are reported to improve the statistical appropriateness of the test of Likert scale. Moreover, using non-parametric alternatives like CATPCA to testify the results of FA greatly increased the overall value and validity of the test.

Suggested Citation

  • Nadeem Uz Zaman, Zainab Bibi, Sana Ur Rehman Sheikh, Abdul Raziq, 2020. "Manualizing Factor Analysis of Likert Scale Data," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 7(2), pages 56-67, October.
    • Handle: RePEc:gei:journl:v:7:y:2020:i:2:p:56-67
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    References listed on IDEAS

    as
    1. Dr. ANKUR BARUA, 2013. "Methods for Decision-Making in Survey Questionnaires Based on Likert Scale," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 3(1), pages 35-38, January.
    2. Ankur Barua, 2013. "Methods for Decision-Making in Survey Questionnaires Based on Likert Scale," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 3(1), pages 35-38.
    3. Dolnicar, Sara & Grün, Bettina & Leisch, Friedrich, 2016. "Increasing sample size compensates for data problems in segmentation studies," Journal of Business Research, Elsevier, vol. 69(2), pages 992-999.
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