📚 Learning Guide
Matrix Decomposition Techniques
easy

Which matrix decomposition technique is commonly used in business analytics to simplify the analysis of large datasets by breaking them down into their constituent components?

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Learning Path
Learning Path

Question & Answer
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Choose the Best Answer

A

Singular Value Decomposition (SVD)

B

Cholesky Decomposition

C

QR Decomposition

D

LU Decomposition

Understanding the Answer

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Answer

The technique most often used is Singular Value Decomposition, or SVD. SVD takes a large data matrix and writes it as a product of three matrices, separating the data into orthogonal “basis” vectors and their associated strengths. This lets analysts see which patterns or directions explain most of the variation, making it easier to spot trends, filter noise, or compress the data. For example, a sales table can be decomposed so that a few key components explain most of the sales variation, simplifying forecasting and reporting.

Detailed Explanation

Singular Value Decomposition splits a matrix into three parts: two rotation matrices and one diagonal matrix of singular values. Other options are incorrect because Cholesky decomposition is used to solve systems of equations when the matrix is positive definite; QR decomposition is used to solve least‑squares problems and to find orthogonal bases.

Key Concepts

Business Analytics
Topic

Matrix Decomposition Techniques

Difficulty

easy level question

Cognitive Level

understand

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