COMPUTER-IMPLEMENTED MODELS PREDICTING OUTCOME VARIABLES AND CHARACTERIZING MORE FUNDAMENTAL UNDERLYING CONDITIONS

摘要

A method and device predict an outcome variable of an observed phenomenon based on values of a panel of three or more observed constituents and, to do so, employ a series of processes, implemented by a machine, for developing a K-component linear model wherein, among other things, the first component is by itself significantly predictive of the outcome variable, and a second component is correlated with the first component, and loadings for each constituent within any given one of the components subsequent to the first component are determined in a sequentially independent manner.