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Hello Friends, In the last video on Multivariate Analysis, we had seen the Introduction of Multivariate analysis, some of the important concepts used in it and the introduction of various tools and techniques as a part of it. In this video, we are going to learn the 1st tool in multivariate analysis in Minitab software with the help of a practical example for easy understanding and better clarity. So, lets begin Principal Components Analysis: The Principal Components Analysis is used to identify a smaller number of uncorrelated variables, also called principal components, from a large set of data. With this analysis, you create new variables (principal components) that are linear combinations of the observed variables. The goal of principal components analysis is to explain the maximum amount of variance with the fewest number of principal components. For example, a bank requires eight sections of information from loan applicants like income, education level, age, length of time a
