A newspaper firm initiated an online subscription of the newspaper and wants to know the satisfaction of subscribers. A sample of subscribers was selected and was asked to respond to seven attitudinal questions on a likert scale (1 is strongly disagree and 5 is strongly agree). Questions (statements) provided to the respondents are given below.
Statements Informative "I gain a lot of information from reading this newspaper." Current "Newspaper helps me to keep in touch with the global events." Cheaper "It is cheaper to subscribe for the online version of newspaper than to buy it at newsagents." Mode "I am willing to subscribe the online mode if the weekend paper delivery is included." Payment "I subscribe to newspaper that charges subscription payment of not more than $5 per week." Useful "Online newspapers are useful to people who surf the Internet frequently." SPSS output of the factor analysis is given below: Total Variance Explained Extraction Sums of Squared Rotation Sums of Squared Initial Eigenvalues Loadings Loadings % of Cumulative % of Cumulative % of Cumulative omponent Total Variance Total Variance Total Variance 1.915 31.925 31.025 1.915 31.925 31.925 1.795 20.911 29.911 1.628 27.137 59.062 1.628 27.137 59.062 1.701 28.345 58.258 1.440 23.097 83.050 1.440 23.097 83.059 1.488 24.803 83.058 523 8.723 91.781 287 4.789 98.570 208 3.430 100.000 xtraction Method: Principal Component Analysis.Scree Plot 30 Eigenvalue 2 3 5 Component Number Component Matrix Component 1 2 3 gain a lot of information from reading this 634 .543 -.407 newspaper Newspaper helps me to keep in touch with the 516 739 -.237 global events It is cheaper to subscribe for the online version of 352 245 742 newspaper than to buy it at newsagents I am willing to subscribe the online mode if the -.723 802 085 weekend paper delivery is included I subscribe to newspaper that charges subscription 176 237 811 payment of not more than $5 per week Online newspapers are useful to people who surf -.754 555 .051 the Internet frequently Extraction Method: Principal Component Analysis. a. 3 components extracted.Rotated Component Matrix Component 1 2 3 gain a lot of information from reading this -.143 916 - 057 newspaper Newspaper helps me to keep in touch with the 079 .921 122 global events It is cheaper to subscribe for the online version of -.088 098 847 newspaper than to buy it at newsagents am willing to subscribe the online mode if the 943 ..031 050 weekend paper delivery is included subscribe to newspaper that charges 043 -.038 861 subscription payment of not more than $5 per week Online newspapers are useful to people who surf 932 .031 -.098 the Internet frequently Extraction Method: Principal Component Analysis Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations. Using the given outputs, answer the following questions: a. Based on the total variance table, how many factors should be selected? b. What is the percentage of variation explained by factors selected in part a? c. According to the Scree Plot, how many factors would you select as appropriate for this test? and why? d. Referring to the tables above, differentiate between the Component Matrix and Rotated Component Matrix. e. Using the Rotated Component matrix, identify the characteristics of the attitudes that Factor 1, 2, and 3 are loaded by
