You have applied PCA to your dataset and the first three principal components explain 95% of the variance. What does this signify, and how would you proceed?

  • This indicates an error in the PCA process
  • This means that 5% of the data is missing, so you should reapply PCA
  • This means that 95% of the variance is captured, so you may choose to proceed with these components
  • This means that the data is uniformly distributed and PCA is not needed
The first three principal components explaining 95% of the variance means that most of the original information is captured, and you may proceed with these components if the loss of 5% is acceptable.
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