A top way of determining the number of factors to retain is generating a random set of cases that have a similar number of items to your target data set. You then compare the magnitude of eigen values in your random data set to the magnitude of eigen values in your real data set to see at what point the random data has larger values than the real data set. This technique is called _____.

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Parallel analysis is a method used to determine the number of factors to retain in factor analysis by comparing the eigenvalues from the actual data set to those from a randomly generated data set of the same size.

A Top Way of Determining the Number of Factors to Retain