The biplot overlays the score and loading plots. Use the biplot to assess the data structure and loadings on one graph. The second principal component scores are plotted versus the first principal component scores. The loadings for these two principal components are plotted on the same graph.

For the loan applicant data:

·    Age, Residence, Employ, and Savings have large positive loadings on component 1, so label this component Applicant background.

·    Debt and Credit cards have large negative loadings on component 2, so label this component Credit History.

·    The data point in the lower right hand corner may be an outlier. You may want to investigate this point further.