Varimax rotation is used to achieve which objective in factor analysis?

• A. A method of oblique rotation that allows factors to be correlated.
• B. A method that rotates axes to minimize cross-loadings.
• C. A method that loads all variables equally on each factor.
• D. A method of orthogonal rotation that maximizes the dispersion of squared loadings within each factor.

Answer: (D)

Varimax rotation is an orthogonal rotation designed to produce a simple structure by maximizing the dispersion of squared loadings within each factor. In practice, this means that for a given factor, some variables load highly while most load near zero on that factor, and the factors remain uncorrelated. This reduction of cross-loadings is a consequence of the objective, but the defining goal is to maximize how spread out the squared loadings are across variables for each factor. The other descriptions don’t capture that precise mathematical aim: oblique rotations allow factor correlations, loading every variable equally on every factor would prevent a simple structure, and while varimax reduces cross-loadings, the formal aim is the dispersion of squared loadings.