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Type I and Type II Error Rates and Overall Accuracy of the Revised Parallel Analysis Method for Determining the
Samuel B Green1, Marilyn S Thompson1, Roy Levy1
1Arizona State University, Tempe, AZ, USA.
Abstract:
Traditional parallel analysis (T-PA) estimates the number of factors by sequentially comparing sample eigenvalues with eigenvalues for randomly generated data. Revised parallel analysis (R-PA) sequentially compares the kth eigenvalue for sample data to the kth eigenvalue for generated data sets, conditioned on k- 1 underlying factors. T-PA and R-PA are conceptualized as stepwise hypothesis-testing procedures and, thus, are alternatives to sequential likelihood ratio test (LRT) methods. We assessed the accuracy of T-PA, R-PA, and LRT methods using a Monte Carlo approach. Although no method was uniformly more accurate across all 180 conditions, the PA approaches outperformed LRT methods overall. Relative to T-PA, R-PA tended to perform better within the framework of hypothesis testing and to evidence greater accuracy in conditions with higher factor loadings.
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