PRINCIPAL COMPONENT ANALYSIS AS A RANKING TOOL - A CASE OF WORLD UNIVERSITIES.

The purpose of this paper is to demonstrate the application of Principal Component Analysis (PCA) as a ranking tool. Given the increasing international attention on education quality, ranking of universities has become an important indicator of institutional quality. Despite the increase in ranking methodologies over the years, concern still remains over the validity and reliability of the ranking tools and methodologies. The controversy surrounding methodologies and tools remains unresolved. To conduct this demonstration, first standardized QS variables were obtained. Second, PCA analysis was applied on the variables to obtain quality levels which then informed the ranks. We compare PCA ranks against QS ranks and the results reveal that different methodologies result in different ranks. Although based on same variables, but PCA attaches weights to variables not as pre-determined but as a result. By demonstrating application of Principal Component Analysis (PCA) as a ranking tool, this paper broadens the methodological scope as academics seek consensus on the best way to define and measure university quality, which translates to university ranks.