The SPSS tutorial says that Principal Component Method for factor extraction followed by varimax rotation. However, some of the experts suggest that it should be the Maximum Likelihood Method of Extraction followed by Promax rotation. Which is the right approach?
Factor analysis involves computing a correlation matrix, extracting factors, rotating the factors and calculating the factor scores. The aim of most factor analyses is to simplify a matrix of correlations such that they can be explained in terms of a few underlying factors.All positions of the factor axes are mathematically equivalent and all explain the original correlation matrix equally well. Each factor solution can be thought of as a hypothesis to account for observed correlations in a correlation matrix. However, Occam`s razor states that we should pick the simplest explanation of those that fit the facts.
The computerized program FACTOR is a freely available solution for the calculation of an exploratory factor analysis. SPSS has certain limitations for calculating the updated recommendations for this statistic. Review the work of Lloret-Segura et al. (2014) can be very helpful
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