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Application of Principal Component Analysis As A DataReducing Technique |
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| รหัสดีโอไอ | |
| Creator | Fayose Taiwo Stephen |
| Title | Application of Principal Component Analysis As A DataReducing Technique |
| Contributor | Egobi Mary Ekundayo |
| Publisher | Faculty of Science and Technology, Suan Sunandha Rajabhat University |
| Publication Year | 2562 |
| Journal Title | Suan Sunandha Science and Technology Journal |
| Journal Vol. | 6 |
| Journal No. | 1 |
| Page no. | 27 to 30 |
| Keyword | Principal Component Analysis, Principal Component, Kaiser's Criterion, Guttman, Kaiser, Karhunen-Loeve Transform, Proper Orthogonal Decomposition |
| URL Website | www.ssstj.sci.ssru.ac.th |
| Website title | Suan Sunandha Science and Technology Journal (SSSTJ) |
| ISSN | 2351-0889 |
| Abstract | This paper is on the application of principal component as a data reducing technique on economic variables for the period of 26 years. The source of data was secondary and was collected from the Central Bank of Nigeria Statistical Bulletin. The aim is to use principal component analysis effectively and profitably to reduce the large and massive economic variables (Data) to a smaller number of PCs while retaining as much as possible of the variation in the original variables. The methodology employed Principal Component which are orthogonal in nature from the original Economic Variables. The criterion for selecting the number of Principal Component to be extracted is the KAISER'S CRITERION which was suggested by GUTTMAN and adopted by KAISER. The result of the analysis revealed that the variables BOP, LR, and INFL have low correlation coefficient with other variables. Furthermore, results showed that the large sample size of economic variables have being reduced and the principal components are extracted in which the first Principal Component have the highest number of variables which are positively highly correlated, the second Principal Component loads positively with Crude Oil production, Lending Rate and Inflation Rate while the third Principal Component load positively with Balance of Payment. |
