The accompanying data set contains some economic indicators for 11 African countries collected by the World Bank
Question:
The accompanying data set contains some economic indicators for 11 African countries collected by the World Bank in 2015. The economic indicators include annual % growth in agriculture (Agriculture), annual % growth in exports (Exports), annual % growth in final consumption (Final consumption), annual % growth in GDP (GDP growth), and annual % growth in GDP per capita (GDP per capita growth). A portion of the data set is shown in the accompanying table
a. Perform correlation analysis on the data. Discuss the correlation between the variables in the data set. Which variable pair has the highest correlation?
b. Allow the maximum number of principal components to be calculated by the software. How many principal components are computed? What percent of the total variability is accounted for by the first three principal components? How many principal components must be retained in order to account for at least 80% of the total variance in the data?
c. Which original variable is given the highest weight to compute the first principal component? Which original variable is given the highest weight to compute the second principal component?
d. Create a new data set that contains the country names and the principal components that account for at least 80% of the total variance in the data.
Step by Step Answer:
Business Analytics Communicating With Numbers
ISBN: 9781260785005
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly, Kevin Lertwachara, Leida Chen