Manualizing Factor Analysis of Likert Scale Data

Nadeem Uz Zaman, Zainab Bibi, Sana Ur Rehman Sheikh, Abdul Raziq ()
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Nadeem Uz Zaman, Zainab Bibi, Sana Ur Rehman Sheikh, Abdul Raziq: Balochistan University of Information Technology, Engineering and Management Sciences

Journal of Management Sciences, 2020, vol. 7, issue 2, 56-67

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.

Keywords: Likert scale; factor analysis; validity; multivariate data analysis. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:gei:journl:v:7:y:2020:i:2:p:56-67

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