Your assignment is to prepare and submit a paper on the classification of a statistical ward. The objective is to choose the least number that will fully stand for the major dimensions in the data. Variables used are demographic and socioeconomics, which cover six dimensions including household composition, demographic structure, socioeconomic, housing, industry sector, and employment. The variable is selected in a procedure with several steps. The first step considers variables from the key statistics table. Step two merges the variables to create composite variables. The third step removes variables strongly correlated through examining the correlation matrix. this is necessary and done to avoid too much influence of the census data on the result. The last step excludes variables previously considered as badly behaved and with a high proportion of zeros. he Advisory Board was consulted and proposed conduction of principal component analysis to aid variable selection. The objective of the sorting variables was to select the least likely number of variables, which adequately stand for the major measurements of the Census data in 2001.
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