Principal Components Analysis of loan interest rates

 Msc. Edmira Shahu, Msc. Markela Muca, Dr. Dori Risilia

 Abstract

The objective of this study is to analyse the loan interest rates. To reach this objective we will use the technique of Principal Components Analysis – PCA. This analysis gives us the posibility to substitute the original variables with a lower number of variables which exlain the larger part of the total variance. Data from loans interest rates are taken from publications of Bank of Albania. For the data analysis R software has been used.

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