Sums of Squared Loadings Total: Total variance after rotation. Helps focus or target the business market better. An example of usage of a factor analysis is the profitability ratio analysis which can be found in one of the examples of a simple analysis found in one of the pages of this site.
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It helps in correlating the data and draw conclusions from the gathered data. Cause-effect relationships can be established by taking support from established theories or by investigating more variables in action influencing the two variables. A correlation matrix is simple a rectangular array of numbers which gives the correlation coefficients between a single variable and every other variables in the investigation. Structural Equation Modeling helps in finding an alternate model having acceptable reliability and validity scores if the initial model has failed due to some unavoidable and irreparable issues. Extraction sums of Squared Loadings Total: Total variance after extraction.
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