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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.
Correlation The correlation is commonly used and a useful statistic used to describe the degree of the relationships between two or more variables. Pearson's correlation refle
Main stages of Statistical Inquiry The following are the various stages of a statistical inquiry (1) Planning the Inquiry: First of all we have to assess the problem und
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The prevalence of undetected diabetes in a population to be screened is approximately 1.5% and it is assumed that 10,000 persons will be screened. The screening test will measure
Find the minimum constant workforce: ABC Company, a manufacturer of roofing supplies, has developed monthly forecasts for roofing tiles. The forecasted demand and the expected
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Rank Correlation Sometimes the characteristics whose possible correlation is being investigated, cannot be measured but individuals can only be ranked on the basis of the chara
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a. How can break-even analysis be used in selecting a new plant site? b. What are potential advantages and disadvantage of locating a production facility in foreign country i
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