SOA Exam SRM Sample Question 5
Study guide: Exam SRM
Consider the following statements:
- I. Principal Component Analysis (PCA) provide low-dimensional linear surfaces that are closest to the observations.
- II. The first principal component is the line in p-dimensional space that is closest to the observations.
- III. PCA finds a low dimension representation of a dataset that contains as much variation as possible.
- IV. PCA serves as a tool for data visualization.
Determine which of the statements are correct.
- A) Statements I, II, and III only
- B) Statements I, II, and IV only
- C) Statements I, III, and IV only
- D) Statements II, III, and IV only
- E) Statements I, II, III, and IV are all correct
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