The Underlying, Mathematical Objective in Principal Components Analysis Is to Obtain

question 13

Multiple Choice

The underlying, mathematical objective in principal components analysis is to obtain:

• A) Correlated linear combinations of the original variables that account for as much of the total variance in the original variables as possible.
• B) Uncorrelated linear combinations of the original variables that account for some of the total variance in the original variables.
• C) Uncorrelated linear combinations of the original variables that account for as much of the total variance in the original variables as possible.
• D) Uncorrelated combinations of the original variables that account for as much of the total variance in the original variables as possible.

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Definitions:

Desired Margin

The profit margin a company aims for over the cost of a product or service.

Increase Price

The act of raising the cost at which goods or services are sold, usually to reflect higher production costs or to gain greater profit margins.

Own-Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its own price, with higher elasticity indicating greater sensitivity.

Brand of Shoes

A specific make or line of footwear identified by a unique name or symbol, often associated with certain quality, style, or prestige.