Actuarial Notes

CAS Exam MAS-II Fall 2019, Question 39

Study guide: Exam MAS-II

Dataset Z contains 4 variables and 100 records and has the following correlation matrix.

\begin{bmatrix}
1.00 & 0.93 & 0.08 & -1.00 \\
0.93 & 1.00 & 0.10 & -0.93 \\
0.08 & 0.10 & 1.00 & -0.08 \\
-1.00 & -0.93 & -0.08 & 1.00
\end{bmatrix}

Determine which of the following plots of cumulative proportional variance is produced by principal components analysis on Dataset Z.

  • A) Plot A
  • B) Plot B
  • C) Plot C
  • D) Plot D
  • E) Plot E

Answer this question and see the worked solution

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