Assess the eigenvalue criterion. How many components were retained? Is the eigenvalue ap- propriate, considering the number of factors and the communalities?Assess the variance explained by the retained components. What is the total variability ex- plained by the model? Is this amount adequate?

Assess the scree plot. At which component does the plot begin to level off?

Assess the residuals. How many residuals exceed the 0.05 criterion?

Having applied the four criteria, do you believe the number of components retained in this analy- sis is appropriate? If not, what is your recommendation?

2. Assume that you believe four components should be retained from the analysis in the previous exer- cise. Conduct a factor analysis with varimax rotation (be sure to retain four components).

Evaluate each of the four criteria. Has the model fit improved? Explain.

Provide two alternatives for improving the model.