Assume that the NASDAQ values are measured on a different scale, as the NASDAQ is actually a
Question:
a. Conduct PCA using the covariance matrix on the Dow, S&P, and NewNASDAQ. How does changing the scale influence the eigenvalues and eigenvectors?
b. Conduct PCA using the correlation matrix on the Dow, S& P, and NewNASDAQ. How does changing the scale influence the eigenvalues and eigenvectors?
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Related Book For
Practicing Statistics Guided Investigations For The Second Course
ISBN: 9780321586018
1st Edition
Authors: Shonda Kuiper, Jeff Sklar
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