Discuss the process of selecting surrogate variables. Also discuss how the researcher should decide on which variable to choose in complex situations

What will be an ideal response?

Selection of substitute, or surrogate variables, involves singling out some of the original variables for use in subsequent analysis. This allows the researcher to conduct subsequent analysis and interpret the results in terms of original variables rather than factor scores. By examining the factor matrix, one could select for each factor the variable with the highest loading on that factor. That variable could then be used as a surrogate variable for the associated factor. This process works well if one factor loading for a variable is clearly higher than all other factor loadings. However, the choice is not as easy if two or more variables have similarly high loadings. In such a case, the choice between these variables should be based on theoretical and measurement considerations. For example, theory may suggest that a variable with a slightly lower loading is more important than one with a slightly higher loading. Likewise, if a variable has a slightly lower loading but has been measured more precisely, it should be selected as the surrogate variable.