A new iterative method for correcting erroneous communality estimates in factor analysis

A new method for correcting erroneous communality estimates is applicable to any completed orthogonal factor solution. It seeks, by direct correction of factor loadings, to make the residuals conform to the chance error criteria of zero mean and zero skewness for each row separately. Two numerical examples, with one and two factors, respectively, are presented. The method can be used as a short cut for Dwyer's extension in adding variables to a matrix. It can also be used as a short cut in cross-validation factor studies. Successful use on problems with many variables and numerous factors is claimed. Factors can be made oblique,after correction, if desired.