Principal component analysis is
A) Used to summarize data whilst retaining maximum variance.
B) Used to summarize data whilst retaining minimum variance.
C) Derive as few factors as possible.
D) Derive as many solutions as possible.

Question

Quizplus · Accepted Answer

The purpose of principal component analysis is to summarize data while retaining the maximum amount of variance. This is achieved by finding linear combinations of the original variables that explain as much of the total variability in the data as possible.

Principal Component Analysis Is