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Henry Kaiser suggested a rule for selecting a number of components m less than the number needed for perfect reconstruction: set m equal to the number of eigenvalues greater than I. This rule is often used in common factor analysis as well as in PCA. Several lines of thought lead to Kaiser's rule, but the simplest is that since an eigenvalue is the amount of variance explained by one more component, it doesn't make sense to add a component that explains less variance than is contained in one variable. Since a component analysis is supposed to summarize a set of data, to use a component that explains less than a variance of I is something like writing a summary'of a book in which one section of the summary is longer than the book sectio~it summarizes--which makes no sense. However, Kaiser's ma-jor justification for th5 rule was that it matched pretty well the ultimate rule of doing several component analyses with diff-nt- numbers of komponents, and seeing which analysis made sense. That ultimate rule is much easier today than it was a generation ago, so Kaiser's rule seems obsolete.
Differentiate between prediction, projection and forecasting.
Linear Programming
Methods of Forecasting Various techniques which are generally used in business forecasting are as under: 1. Forecasting through the opinion of heads of department
The following are the various types of common averages used in statistical analysis given in the form of a chart. Figure 1
how can i calculate seasonal index?
Statistics Can Lead to Errors The use of statistics can often lead to wrong conclusions or wrong estimates. For example, we may want to find out the average savings by i
Suppose the money supply process is now represented by the following function: where m measures the sensitivity of money supply with respect to the interest rate. (i) Us
Do people of different age groups differ in their response to e-mail messages? A survey by the Cent of the Digital Future of the University of Southern California reported that 70.
Comparison of the Principal Averages-Mean, Median and Mode The mean, median, and mode are located at the same point in a symmetrical frequency distri
Geometric Mean is defined as the n th root of the product of numbers to be averaged. The geometric mean of numbers X 1 , X 2 , X 3 .....X n is given as
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