Reference
Finch, W. H. (2020). Using Fit Statistic Differences to Determine the Optimal Number of Factors to Retain in an Exploratory Factor Analysis. Educational and Psychological Measurement, 80(2), 217-241. https://doi.org/10.1177/0013164419865769
Review
In this article, the author investigates the effectiveness of model fit indices in determining the optimal number of factors to retain in exploratory factor analysis (EFA). The article emphasizes the absence of a universally optimal statistical tool for resolving this issue and discusses the mixed results of using model fit indices in conjunction with normally distributed indicators and categorical indicators.
Finch (2020) conducted a simulation study comparing the performance of fit index difference values and parallel analysis, a widely used and reliable method for determining factor retention. The results demonstrated that fit index difference values outperformed parallel analysis for categorical indicators and for normally distributed indicators when factor loadings were small. This finding highlights the potential of fit index difference values as a viable alternative to parallel analysis in certain situations.
The implications of Finch's (2020) findings have a considerable impact on the field of social sciences research. By understanding the effectiveness of fit index difference values in determining the optimal number of factors to retain in EFA, researchers can make more informed decisions when selecting the appropriate statistical tool. This, in turn, can lead to more accurate and valid results, enhancing the quality of research in the social sciences.