Which of the following are true about Principal Component Analysis (PCA)? (2 cor

Question

Which of the following are true about Principal Component Analysis (PCA)? (2 correct answers)

a) PCA is intended for use with categorical variables

b) The idea of PCA is to find a linear combination of the two variables that contains most, even if not all, of the information, so that this new variable can replace the two original variables.

c) PCA is intended for use with quantitative variables

d) Normalization (= standardization) is usually performed in PCA when analysis is conducted on covariances

Explanation / Answer

The correct options are B and C

Explanantion:

Principal component analysis (PCA) is one of the oldest and most widely used, It is to find a linear combination of the two variables that contains most, even if not all, of the information, so that this new variable can replace the two original variables. Information here is in the sense of variability:

PCA is intended for use with quantitative variables; For categorical variables use other methods. Such as correspondence analysis.

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