There are several rules. The most popular two are:

1. Kasier criterion: retain the factor when eigenvalue is larger than 1
2. Scree plot: Basically, it is eyeballing. Plot the number of factors 
and the eigenvalue and see where the sharp turn is.

Hope it helps.

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Chong-ho (Alex) Yu, Ph.D., CNE, MCSE
Instruction and Research Support
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Arizona State University
Tempe AZ 85287-0101
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On Tue, 2 May 2000 [EMAIL PROTECTED] wrote:

> Would any of you know a rule of thumb for selecting the proper (of
> optimal) number of factors to be extracted from a factor analysis.
> Also, how many variables can there be in such factor (is two variable
> in one factor not enough?).
> 
> Sorry for my english...
> 
> 
> Sent via Deja.com http://www.deja.com/
> Before you buy.
> 
> 
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