Table 3-3. Rotated component matrix for 8 variables of household composition
Loadings Communality
Variable Factor 1 Factor 2 (extraction)
Toilet Facility .744 .242 .611
Drinking Water .690 .309 .572
Floor Material .619 -.002 .384
VCR .616 .168 .408
Car .587 .115 .358
Refrigerator .222 .838 .751
Electricity .138 .825 .699
TV .143 .778 .626
Variance (%)* 39.61 15.50
Source: Demography and Health Survey, Trinidad and Tobago, 1987 (child dataset)
Note: Extraction Method: Principal Component Analysis
Rotation Method: Varimax with Kaiser Normalization
KMO and Bartllett's Test: sampling adequacy = .801
* Rotation sums of squared loadings
construct a composite index for, namely, "luxury items." Factor 2, which is highly
correlated with refrigerator, electricity, and TV, is interpreted as a measure such as
"consumer durables."
In this study, however, the result of factor analysis is regarded as a means of
determining which variables can be adequate for creating an index of "quality of life."16
Considering the moderate communality (the proportion of variance explained by factors)
for each variable, I decided to leave all eight variables in the analysis. The weight in
Factor 1 for each variable has a positive direction indicating better quality of household
composition and housing quality; in addition, Factor 1 accounts for 39.61% of the
16 First of all, factor analysis was conducted with 11 variables; in addition to 8 variables, 'has stove,' 'has
radio,' 'any family member has house/apartment,' were included, and this analysis extracted three factors.
Since these three variables negatively correlated with other variables in the analysis, they were excluded
from the following analysis.