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Dimensionality reduction refers to techniques for reducing many variables into a smaller number while keeping as much information as possible. One prominent method is [tag pca]
2
votes
1
answer
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How to choose variables for regression
I have a dataset of long/short equity hedge funds returns and their associated benchmarks (market indices).
I need to form multiple regression on the fund returns using the benchmarks returns as ind …
0
votes
1
answer
447
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Including the dependent variable in your data to perform principal component analysis?
Let's say you have a data set with GPA (dependent variable) and Amount of alcohol, Amount of study, IQ, and SAT score as the independent variables. And you want to perform the principal component anal …