Application of principal component analysis to general contracting risk assessment

In order to evaluate the general contracting risk, This paper utilizes the principal components analysis method of multi-dimensional statistical analysis. PCA is a powerful tool for analysing data. By using principal component method to process a number of listed general contracting risk indices. Then applied principal component analysis to eliminate the general contracting risk indices having the relativities and overlap information. The representative indices from principal component analysis process substitute for the primary indexes. Thus subjective random problem in choosing indices can be avoided. Finally, the general contracting risk assessment model was established based on fuzzy mathematic. The results corresponded with the real situation.