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Canonical correlation analysis (CC) allows the investigation of the relationship between two ,sets of variables. For example, a sociologist may want to investigate the Relationship between two predictors of social mobility based on interviews, with actual subsequent social nlobility as measured by four different indicators. A medical researcher may want to study the relationship of various risk factors to the development of a group of symptoms. In all of these cases, the researcher is interested in the relationship betweet; ' two, sets of variables, and Canonical Correlation would be the appropriate method of analysis. . Canonical Correlation combines the dependent variables to find pairs, of new variables called canonical variables, CV, 'one for each data table having the highest . correlation. However, the CV's, even when highly correlated, do not necessarily explain a large portion of the variance of the original tables. This makes the interpretation of the CV sometimes difficult, but CC is nonetheless an important theoretical tool because most multivariate techniques can be interpreted as a special case of CC.
Exercise: (Binomial and Continuous Model.) Consider a binomial model of a risky asset with the parameters r = 0:06, u = 0:059, d = 0:0562, S0 = 100, T = 1, 4t = 1=12. Note that u
(a) At a stream gauging station, the following discharges and stage measurements were taken for the purpose of the rating curve at that section: Stage (m) 1
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Problem: A survey usually originates when an individual or an institution is confronted with an information need and the existing data are insufficient. Planning the questionn
application of chi square test in civil engineering
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Ask 3. Precision Manufacturing has a government contract to produce stainless steel rods for use in military aircraft. Each rod is required to be 20 millimeters in diameter. Each
Differentiate between prediction, projection and forecasting.
First we look at these charts assuming that we know both the mean and the standard deviation of the process, that is μ and σ . These values represent the acceptable values (bench
Primary and Secondary Data: Primary Data: These data are those are collected for the first time. Thus primary data are original in character and gathered by actual observat
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