Suppose a data set with 10 variables produces a scree plot that is flat. What does this

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Suppose a data set with 10 variables produces a scree plot that is flat. What does this tell you about the correlation of the variables? What does this suggest about the usefulness of using the first few principal components of these variables in a predictive regression?

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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