2005
DOI: 10.22237/jmasm/1114906380
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Determining The Correct Number Of Components To Extract From A Principal Components Analysis: A Monte Carlo Study Of The Accuracy Of The Scree Plot

Abstract: This article pertains to the accuracy of the of the scree plot in determining the correct number of components to retain under different conditions of sample size, component loading and variable-tocomponent ratio. The study employs use of Monte Carlo simulations in which the population parameters were manipulated, and data were generated, and then the scree plot applied to the generated scores.

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Cited by 49 publications
(25 citation statements)
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“…The PC values can be visualized in a Scree plot, in which the explained variance is plotted versus PC index in order of decreasing explained variance . Often, the number of components retained for further analysis is determined through the identification of a change in slope in the Scree plot, with the lowest order PCs, corresponding to the largest slope value, used for further analysis; however, this method is often criticized for its subjectivity . Alternately, the number of retained PCs can be chosen using a parallel analysis, in which the eigenvalues of the covariance matrix C are compared to those of a random, uncorrelated matrix of the same size .…”
Section: Experimental Procedures and Data Analysis Methodologiesmentioning
confidence: 99%
See 2 more Smart Citations
“…The PC values can be visualized in a Scree plot, in which the explained variance is plotted versus PC index in order of decreasing explained variance . Often, the number of components retained for further analysis is determined through the identification of a change in slope in the Scree plot, with the lowest order PCs, corresponding to the largest slope value, used for further analysis; however, this method is often criticized for its subjectivity . Alternately, the number of retained PCs can be chosen using a parallel analysis, in which the eigenvalues of the covariance matrix C are compared to those of a random, uncorrelated matrix of the same size .…”
Section: Experimental Procedures and Data Analysis Methodologiesmentioning
confidence: 99%
“…Often, the number of components retained for further analysis is determined through the identification of a change in slope in the Scree plot, with the lowest order PCs, corresponding to the largest slope value, used for further analysis; however, this method is often criticized for its subjectivity . Alternately, the number of retained PCs can be chosen using a parallel analysis, in which the eigenvalues of the covariance matrix C are compared to those of a random, uncorrelated matrix of the same size . In parallel analysis, an eigenvalue of C , which is greater than the corresponding parallel random eigenvalue is said to correspond to a significant component, whereas those eigenvalues of C that are smaller than their parallel random eigenvalues are said to correspond to random noise .…”
Section: Experimental Procedures and Data Analysis Methodologiesmentioning
confidence: 99%
See 1 more Smart Citation
“…Deciding how many clusters to retain from a cluster analysis requires an element of visual subjectivity, but this remains a common method for determining the number of components to extract from a dataset (Cattell and Vogelmann 1977). Statistical simulation studies have shown that when component or cluster loading is higher, identification of the "correct" number of components is more accurate (Kanyongo 2005). These methods provide a more objective and assemblage specific approach to identifying data clusters than arbitrary universal size cut-offs.…”
Section: Sample and Methodsmentioning
confidence: 99%
“…Traditional ways of selecting the principal components from the projected space would rely on a simple threshold that filters out the dimensions with relatively small eigenvalues. The threshold is normally determined by visual or statistical analysis on the scree-plot [4], matrix properties [5], or information gain [6]. However, as one of the special properties of Bayes classifier, the estimation of the conditional likelihood, especially the sensitivity of the estimation, are not normally considered as a critical factor when deciding the threshold for selecting the principal components.…”
Section: Introductionmentioning
confidence: 99%