A SAS analyst runs PROC PRINCOMP and requests the first 3 principal components. The cumulative variance explained is 45%, 62%, and 74%. Which statement about the 3rd principal component is correct?
Select an answer to reveal the explanation.
Short Explanation and Infographic
Here's the deal — b is correct because cumulative explained variance of 74% with 3 components vs. 62% with 2 components means the 3rd component individually explains 74% - 62% = 12% of total variance.
Full explanation below image
Full Explanation
B is correct because cumulative explained variance of 74% with 3 components vs. 62% with 2 components means the 3rd component individually explains 74% - 62% = 12% of total variance. A is wrong; 74% is cumulative, not individual. C is wrong; components are ordered by decreasing variance, so the 3rd has a smaller eigenvalue than the 2nd. D is wrong; the 1st component corresponds to the largest singular value.