- When performing factor analysis, one is looking for pattern of results such that each variable loads highly onto one and only one factor. However different results may be obtained depending on the number of factors one chooses to extract. The scree plot gives insight into the maximum number of factors to extract.
- Scree plot is a graph of eigenvalues against the corresponding factor numbers; it illustrates the rate of change in the magnitude of the eigenvalues for the factors.

- In this plot the point at which the scree begins is considered to indicate the maximum number of factors to extract.