A rationale and test for the number of factors in factor analysis

@article{Horn1965ARA,
title={A rationale and test for the number of factors in factor analysis},
author={J. Horn},
journal={Psychometrika},
year={1965},
volume={30},
pages={179-185}
}

It is suggested that if Guttman's latent-root-one lower bound estimate for the rank of a correlation matrix is accepted as a psychometric upper bound, following the proofs and arguments of Kaiser and Dickman, then the rank for a sample matrix should be estimated by subtracting out the component in the latent roots which can be attributed to sampling error, and least-squares “capitalization” on this error, in the calculation of the correlations and the roots. A procedure based on the generation… CONTINUE READING

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