Proceedings of the 2015 3rd International Conference on Management Science, Education Technology, Arts, Social Science and Economics

Application of Principal Component Regression Analysis in Economic Analysis

Authors
Ming-ming Chen, Jing-lian Ma
Corresponding Author
Ming-ming Chen
Available Online November 2015.
DOI
10.2991/msetasse-15.2015.255How to use a DOI?
Keywords
regression analysis; principal component analysis; principal component regression analysis; R software
Abstract

In regression analysis, when the independent variables appear multicollinearity, the general effect of the classical regression method for least square estimates of regression coefficients will be poor, but principal component analysis can overcome this deficiency effectively. In this paper, we combined principal component analysis with classical regression analysis. Firstly the principal component analysis was used to a group of sample data based on the introduction of two statistical methods and R software which can lower the dimension of high variant space, then classical regression analysis was used to the sample data to get the quantitative relationship between the variables, and finally compared the two results in order to explain principal component regression analysis is more accurate than the classical regression analysis.

Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2015 3rd International Conference on Management Science, Education Technology, Arts, Social Science and Economics
Series
Advances in Social Science, Education and Humanities Research
Publication Date
November 2015
ISBN
10.2991/msetasse-15.2015.255
ISSN
2352-5398
DOI
10.2991/msetasse-15.2015.255How to use a DOI?
Copyright
© 2015, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Ming-ming Chen
AU  - Jing-lian Ma
PY  - 2015/11
DA  - 2015/11
TI  - Application of Principal Component Regression Analysis in Economic Analysis
BT  - Proceedings of the 2015 3rd International Conference on Management Science, Education Technology, Arts, Social Science and Economics
PB  - Atlantis Press
SP  - 1205
EP  - 1208
SN  - 2352-5398
UR  - https://doi.org/10.2991/msetasse-15.2015.255
DO  - 10.2991/msetasse-15.2015.255
ID  - Chen2015/11
ER  -