EXHIBIT

Table 1 presents a small data set consisting of 12 observations and 2 variables.

Table 1
Small Data Set Consisting of 12 Observations and 2 Variables
Observation
1
2
3
4
5
6
7
8
9
10
11
12

x1

x2

16
12
13
11
10
9
8
7
5
3
2
0

8
10
6
2
8
1
4
6
3
1
3
0

Principal component analysis for data in Table 1

[1] SIMPLE STATISTICS

x1
8.00000
4.80530

MEAN
ST DEV

x2
3.00000
4.59248

[2] COVARIANCES

x1

x2

x1

23.09091

16.45455

x2

16.45455

21.09091

TOTAL VARIANCE = 44.18182

[3a]

PRIN1
PRIN 2

EIGENVALUE
38.5758
5.6060

DIFFERENCE
32.9698

PROPORTION
0.873115
0.126885

CUMULATIVE
0.87312
1.00000

[3b] EIGENVECTORS

x1
x2

PRIN1

PRIN 2

0.728238
0.685324

0.685324

[4] VARIABLE
x1

0.728238

N
12

MEAN
8.000000

STD DEV
4.805300

x2
PRIN1

12
12

3.000000

4.592484
6.210943

PRIN 2

12

16

8.697 10
0.000000

2.367700

[5] PEARSON CORRELATION COEFFICIENTS

x1
x2
PRIN1
PRIN 2
[6] OBS
1
2
3
4
5
6
7
8
9
10
11
12

x1
16
12
13
11
10
9
8
7
5
3
2
0

x1

x2

PRIN1

PRIN 2

1.00000
0.74562

0.74562
1.00000

0.94126
0.92684

0.33768

0.94126

0.92684

1.00000

0.00000

0.33768

0.37545

0.00000

1.00000

x2
8
10
6
2
8
1
4
6
3
1
3
0

PRIN1
9.2525
7.7102
5.6972
1.4994
4.8831
2.0131
0.6853
1.3277
6.2967
6.3825
8.4814
7.8819

0.37545

PRIN 2
1.8414
2.3564
1.2419
2.7842
2.2705
3.5983
0.7282
2.8700
2.3135
0.5137
0.2575
3.2979

Table 2 gives the standardized scores which can be obtained by dividing the principal component
scores by the respective standard deviations.

Table 2
Standardized Principal Component Scores
Observation
1
2
3
4
5
6
7
8
9
10
11
12

PRIN1

PRIN 2

1.490
1.241
0.917
0.241
0.786
0.324
0.110
0.214
1.014
1.028
1.366
1.269

0.778
0.995
0.525
1.176
0.959
1.520
0.308
1.212
0.977
0.217
0.109
1.393