The data set 2010Stock contains 2010 daily closing stock market values for several well-known companies.
a. Conduct PCA on the 2010Stock data set. What percentage of the variation is explained by the first principal component?
b. Create a scree plot. How many components should you include? Provide an explanation for your choice.
c. Create a loading plot. Which variables have large positive or large negative loadings on PC1?
d. Which variables have large positive or large negative loadings on PC2?
e. In 2010, Toyota received a great deal of bad publicity and recalled over 1.5 million vehicles because of a brake problem.8 How does this information influence your interpretation of the first two principal components?