Advances in Economics and Business Vol. 5(9), pp. 500 - 509
DOI: 10.13189/aeb.2017.050903
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Correspondence Analysis in Ternary Diagrams - A Graphical Approach to Improving the Validity of the Interpretation of Point Clouds


Jan Frederik Graff *
School of Business and Economics, Rheinisch-Westfälische Technische Hochschule (RWTH) Aachen University, Germany

ABSTRACT

Correspondence Analysis (CA) is a statistical procedure which is frequently used in market research. However, the neglecting of the third axis in the graphical representation of CA point clouds entails the risk of the faulty clustering of points and the misinterpretation of data. To meet this problem this paper proposes ternary diagrams as an approach to achieving a valid representation and interpretation of three-dimensional point clouds when plotted two-dimensionally. As CA coordinates do not necessarily meet the mathematical prerequisites ternary diagrams require, a procedure will be presented which transforms coordinates in order to meet the prerequisites.

KEYWORDS
Correspondence Analysis, Ternary Diagrams, Point Clouds, Clustering, Transformation

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Jan Frederik Graff , "Correspondence Analysis in Ternary Diagrams - A Graphical Approach to Improving the Validity of the Interpretation of Point Clouds," Advances in Economics and Business, Vol. 5, No. 9, pp. 500 - 509, 2017. DOI: 10.13189/aeb.2017.050903.

(b). APA Format:
Jan Frederik Graff (2017). Correspondence Analysis in Ternary Diagrams - A Graphical Approach to Improving the Validity of the Interpretation of Point Clouds. Advances in Economics and Business, 5(9), 500 - 509. DOI: 10.13189/aeb.2017.050903.