Principal Component Analysis (PCA) is a statistical dimensionality reduction technique used to identify underlying patterns and structures in multivariate data sets. PCA transforms a set of correlated variables into a set of uncorrelated variables called principal components, which account for most of the variability in the original data.
The objective of PCA is to reduce the dimensionality of the data by projecting them into a lower dimensional space while retaining as much information as possible. Principal components are calculated from a covariance or correlation matrix of the original variables and ordered according to their relative contribution to the total variability of the data set. The principal components are then used to reconstruct the original data, allowing for a reduced representation of the original data set.
PCA is commonly used in machine learning applications to simplify and compress data, facilitating analysis and visualisation. It is also used in data exploration to discover underlying patterns and structures in large multivariate datasets.
Before talking about artificial intelligence in the Fintech market, we would like to mention that the term Fintech is nowadays applied to the technologies that are [...]
Read More »When seeking financing for companies, one of the most widely used formulas today is factoring. This is a resource that is not always [....]
Read More »Once the basic concepts for building a commercial software with artificial intelligence are clear, where it is defined to whom to dedicate effort and [...]
Read More »The integration of tools for predictive analytics is already commonplace in large companies, but thanks to the evolution and, above all, to the dem [...]
Read More »