Assignment 4

1. Short notes:-
a) Regression: A regression is a statistical technique that relates a dependent variable to one or
more independent (explanatory) variables. A regression model is able to show whether
changes observed in the dependent variable are associated with changes in one or more of
the explanatory variables.
Formula, Y_i=f(X_i, \beta)+e_i
Where, Y_i = dependent variable
F = function
X_i = independent variable
\beta = unknown parameters
e_i = error terms

b) Correlation: Correlation is a statistical measure that expresses the extent to which two
variables are linearly related (meaning they change together at a constant rate). It's a
common tool for describing simple relationships without making a statement about cause
and effect.

c) Factor Analysis: Factor analysis is a statistical technique that reduces a set of variables by
extracting all their commonalities into a smaller number of factors. It can also be called data
reduction. When observing vast numbers of variables, some common patterns emerge,
which are known as factors.

d) Standard Deviation: A standard deviation (or σ) is a measure of how dispersed the data is in
relation to the mean. Low standard deviation means data are clustered around the mean,
and high standard deviation indicates data are more spread out.
Formulae, \sigma={\sqrt {\frac {\sum(x_{i}-{\mu})^{2}}{N}}}
Where, \sigma = population standard deviation
 N = the size of the population
x_i = each value from the population
\mu = the population mean

2. What is “Eugen value”?

3. What is “Consistency Ratio”?
4. What is AHP?
5. What is consistency index in AHP?