Abstract
The present paper reports on a "Monte Carlo" comparison of two methods of testing the significance of a correlation matrix to determine the suitability and appropriateness of factor analysis. Bartlett's (1950) chi-square test of sphericity and Steiger's (1980) chi-square test are evaluated using 320 computer-generated correlation matrices from samples of N = 20 and N = 200, having actual population correlation coefficients ranging from .01 to .64. A recommendation is made to use Steiger's test prior to factor analysis due to its increased power and computational simplicity relative to Bartlett's test.
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