Suppose a data set with 10 variables produces a scree plot that is flat. What does this

Question:

Suppose a data set with 10 variables produces a scree plot that is flat. What does this tell you about the correlation of the variables? What does this suggest about the usefulness of using the first few principal components of these variables in a predictive regression?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

Question Posted: