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Aug 6th, 2022
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How to Form Tool - PCA

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Principal component analysis is a technique used in machine learning to reduce dimension. In this video we are going to look at what it is, well write some python code, and in the end there will be an interesting exercise for you to work on. Lets say youre working on a building a machine learning model to predict property prices. Here all the columns on the left hand side are the features or the attributes of the property that decides the price. So the column in green is actually your target variable. You probably already know that the price of the home is mainly dependent on area, which town it is in, plot, etc. It depends on how many bathrooms you have in a property but not as much. For example, 2600 square foot home with two bathroom versus three bathroom, price wont be that different. But if you go from 2600 to 3000 square feet price will be docHubly different. So clearly area plot plays a more important role in determining the last price, bathroom plays a little bit of a

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How to set up a Principal Component Analysis in Excel using XLSTAT? Open XLSTAT. Select the XLSTAT / Analyzing data / Principal components analysis command. Select the data on the Excel sheet. Select Observations/variables in the Data format field because of the format of the input data.
Alternative of PCA for Categorical Variables: Multiple Correspondence Analysis (MCA) Another alternative to Principal Component Analysis when trying to reduce the dimensions in a data set that contains categorical variables is to use the Multiple Correspondence Analysis (MCA).
Principal components are created in order of the amount of variation they cover: PC1 captures the most variation, PC2 the second most, and so on. Each of them contributes some information of the data, and in a PCA, there are as many principal components as there are characteristics.
PCA will only analyze continuous variables, so categorical variables are simply ignored for data input. If your data table includes categorical variables, they will not be included in the process of generating principal components.
If different scalings are tried, they should be described. PCA is a tool for identifying the main axes of variance within a data set and allows for easy data exploration to understand the key variables in the data and spot outliers.
The following output describes the structure of each feature. Since PCA only works for numerical, categorical variables needs to be converted to numerical. ## data. frame: 14204 obs.
PCA wont be effective with categorical variables since they lack a variance structure (they are not numerical). Converting categorical variables into a sequence of binary variables with 0 and 1 values is one way to do the PCA in a data set with categorical variables.
Categorical principal components analysis could be used to graphically display the relationship between job category, job division, region, amount of travel (high, medium, and low), and job satisfaction. You might find that two dimensions account for a large amount of variance.

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