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As one of the oldest multivariate statistical methods of data reduction, Principal Component Analysis (PCA)simplifies a dataset by producing a small number of derived variables that are uncorrelated and that account for most of the variation in the original data set. Eventually, the derived variables are combinations of the original variables. For example, it might be ?hat students take 10 examinations and some students do well in one exam whilst other students do better in another. It is difficult to compare one student with another when we have marks from 10 examinations to consider. One obvious way of comparing students is to calculate tlie mean score. This is a constructed combination of the existing variables,. However. we may get a more useful comparison of overall performances by considering other constructed combinations of the 10 exam marks. The PCA is one way of constructing such combinations, doing so in such ewakas to account for as much as possible of the variation in the original data. One can then compare students' performance by considering this much sn~aller number of variables.
Standard Deviation The concept of standard deviation was first introduced by Karl Pearson in 1893. The standard deviation is the most important and the popular measure of disp
Accident proneness A personal psychological issue which affects the individual's probability of suffering the accident. The concept has been studied statistically under the num
Poisson Distribution The poisson Distribution was discovered by French mathematician simon denis poisson. It is a discrete probability distribution. Meaning : In bi
What does the confidence level of a confidence interval tell you? Suppose that a population has mean, µ, and standard deviation, σ. What does the central limit theorem tell us
We want to investigate the income data. In the Excel file Midterm Data.xls there is a tab labeled "Income Data 2006". The data in the tab is the income reported by 400 people in
Methods of Forecasting Various techniques which are generally used in business forecasting are as under: 1. Forecasting through the opinion of heads of department
Grouped Data For calculating mode from a frequency distribution, the following formula Mode = L mo + x W where,
If the economy does well, the investor's wealth is 2 and if the economy does poorly the investor's wealth is 1. Both outcomes are equally likely. The investor is offered to invest
Differentiate between data and database
Assumption of extrapolation
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