In addition to the daily closing values, the file 2006Stock2 contains the daily opening, high, and low values.
a. Conduct principal component analysis on the data set. Can a majority of the variability in the data be explained with just one or two principal components? Explain.
b. Which, if any, principal component measures the difference between opening and closing values?
c. Which, if any, principal component measures the overall stock value?
d. Which, if any, principal component measures the difference between high and closing values? e. Which, if any, principal component measures the difference between high and low values?
f. Create a scatterplot of PC1 versus PC2 where each point is grouped by stock type. This type of scatterplot is often called a score plot. When the first two components explain most of the variance in the data, a score plot can detect clusters, outliers, and trends. What do the clear groupings of points indicate in this plot?