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4.3 Given 12:35] 12.45 65.41 4.53 X = 1.35 4.57 1.27 (a) Use PROC IML to determine the sample principal components and their variances. (b)
4.3 Given 12:35] 12.45 65.41 4.53 X = 1.35 4.57 1.27 (a) Use PROC IML to determine the sample principal components and their variances. (b) Compute the loadings of the variables. (c) What interpretation, if any, can you give to the first principal component? (Assume chat x = retum on income and.ro = earnings before interest and taxes.) (d) Would the results change if correlation matrix is used to extract the principal compo- nents? Why? (Answer this question without computing the principal components.) 4.3 Given 12:35] 12.45 65.41 4.53 X = 1.35 4.57 1.27 (a) Use PROC IML to determine the sample principal components and their variances. (b) Compute the loadings of the variables. (c) What interpretation, if any, can you give to the first principal component? (Assume chat x = retum on income and.ro = earnings before interest and taxes.) (d) Would the results change if correlation matrix is used to extract the principal compo- nents? Why? (Answer this question without computing the principal components.)
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