The table below has standard-of-living information on 32 families. Answer

the following questions:

a. Perform the KMO test of sampling adequacy. Does your KMO value lie

above 0.6? What about the p-value from your chi-square test?

b. Analyze the data using the principal components method using the STATA

commands factor and pca.

c. Use the greigen command and find the number of factors that have to be

retained for the analysis.

d. Compute the linear combinations or the communalities using predict and

store the factors with the names f1 and f2.

e. Cluster the families based on how they load on different factors. Identify

and characterize the families that are particularly affected by poverty.

The variables are defined as follows (see Table 6.10):

1. x1—Poverty Status Index.

2. x2—Food Security Index.

3. x3—Schooling Index.

4. x4—Number of Children below age 5.

5. x5—Number of Dependents.

6. x6—Distance of Drinking Water.

7. x7—Distance to a Health Clinic.

8. x8—Distance to the Market.