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.