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The document provides instructions for performing principal component analysis on a hair salon dataset. It asks the analyst to: 1) Perform exploratory data analysis including univariate and multivariate analyses. 2) Scale the variables and comment on the type of scaling used. 3) Compare the covariance and correlation matrices after scaling and draw inferences. 4) Check for and comment on outliers before and after scaling. 5) Build the covariance matrix, eigenvalues and eigenvectors. 6) Write the explicit form of the first principal component. 7) Discuss the cumulative eigenvalues to determine the optimal number of components and explain what the eigenvectors indicate. Perform PCA and export the component scores. 8) Discuss the business

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2K views

Points

The document provides instructions for performing principal component analysis on a hair salon dataset. It asks the analyst to: 1) Perform exploratory data analysis including univariate and multivariate analyses. 2) Scale the variables and comment on the type of scaling used. 3) Compare the covariance and correlation matrices after scaling and draw inferences. 4) Check for and comment on outliers before and after scaling. 5) Build the covariance matrix, eigenvalues and eigenvectors. 6) Write the explicit form of the first principal component. 7) Discuss the cumulative eigenvalues to determine the optimal number of components and explain what the eigenvectors indicate. Perform PCA and export the component scores. 8) Discuss the business

Uploaded by

Being Indian
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Problem Statement: The ‘Hair Salon.

csv’ dataset contains various variables used for the


context of Market Segmentation. This particular case study is based on various parameters of a
salon chain of hair products. You are expected to do Principal Component Analysis for this case
study according to the instructions given in the following rubric.

Note: This particular dataset contains the target variable satisfaction as well. Please do drop this
variable before doing Principal Component Analysis.

Questions:

1) Perform Exploratory Data Analysis [both univariate and multivariate analysis to be


performed]. The inferences drawn from this should be properly documented. – 5 points

2) Scale the variables and write the inference for using the type of scaling function for this case
study. - 3 points

3) Comment on the comparison between covariance and the correlation matrix after scaling. - 2
points

4) Check the dataset for outliers before and after scaling. Draw your inferences from this
exercise. - 3 points

5) Build the covariance matrix, eigenvalues and eigenvector. - 4 points

6) Write the explicit form of the first PC (in terms of Eigen Vectors) – 5 points

7) Discuss the cumulative values of the eigenvalues. How does it help you to decide on the
optimum number of principal components? What do the eigenvectors indicate? Perform PCA
and export the data of the Principal Component scores into a data frame. – 10 points

8) Mention the business implication of using the Principal Component Analysis for this case
study. – 5 points

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