Take Home Assignment 1, IME 692, Fall 2016

Due date: August 31, 2016

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1. Let ~2 (( ) , (
)). Write the equation of contour ellipses, and mention the half
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length of its major and minor axes. Find the regions of centered at which cover the area of the
true parameter with probability 0.99.

2. This question uses Auto.data file provided with this assignment. To answer each of the
questions, please also reproduce the corresponding R codes (you can cut and paste the R codes in
your submission document).
a. Load Auto.data file into R, and store it as an object called ime692ex. Please note that
the first row provides the variable name.
b. Are there any missing values? How they are denoted? Replace all missing values with NA.
c. Mention the number of rows and columns in the object ime692ex.
d. Create the subset of ime692ex, namely, ime692ex1 that excludes the missing
observations. Mention the number of rows and columns in the object ime692ex1
e. Generate the summary statistics for ime692ex1
f. By default, R treats variable cylinders as a quantitative variable. Convert it into a
qualitative variable. Generate the box-plot of mpg with respect to cylinders.

3. Consider the bank note dataset considered in the class. Apply PCA to the standardized dataset, and
print the eigen vectors and eigen values. How much variance is explained by the first two principal
components. Generate the scree plot for the variance explained by different eigen values. Would
the representation in two dimension be sufficient? Plot the bank notes on the first two principal
components. The genuine bank notes should be marked red using circles, and the counterfeit notes
should be marked blue with cross sign. Based on the scatter plot on first two principal components,
comment on the quality of separation obtained for the counterfeit and genuine notes.