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4.3 Given i_ 12.45] $465.41 4.57} ' 1.35 4.57 1.27 {a} Use PROC IML to determine the sample principal components and their variances. (b)

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4.3 Given i_ 12.45] $465.41 4.57} ' 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 rst principal component? (Assume that x] = return on income and x3 = earnings before interest and taxes.) (d) Would the results change if correlation matrix is used to extract the principal compo- nents? Why? (Answer this questiorl without computing the principal components.)

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