Principal Component Analysis Is

question 20

Multiple Choice

Principal component analysis is

• A) Used to summarize data whilst retaining maximum variance.
• B) Used to summarize data whilst retaining minimum variance.
• C) Derive as few factors as possible.
• D) Derive as many solutions as possible.

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Definitions:

Nonrival

A good or service that can be consumed by one individual without preventing the consumption of the good by another individual.

Nonexcludable

A characteristic of a public good, indicating that it is not feasible to prevent non-paying customers from consuming the good.

Excludable

An excludable good is one from which it is possible to prevent people from benefiting unless they have paid for it.

Public Good

A good or service offered to every member of a society for free, provided by either the government or a private entity or group, without seeking profit.