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To solve the shortcoming of the traditional principal component analysis in term of the processing of nonlinear data, this paper puts forward one principal component analysis method based on the grey correlation method. In face of the multiple indexes comprehensive evaluation problems, this paper establishes the evaluation model by aid of the grey correlation method and by calculating the comprehensive correlation degree of each evaluation index to find out the major factors affecting the problems. This paper aims at apply this method to evaluate the development of the telecommunication industry in various regions all over the country and to explore the major reason for the differences. The results show that this method can comprehensively considerate the various factors of the evaluation problem, which not only avoids the subjectivity of the single factor but also makes the analysis process more reasonable and objective. Also the analysis results can accurately reflect the differences between various factors. Gray correlation analysis method has a low re-quirement on the linearity and regularity of the original data and there is no case where the quantitative result is inconsistent with the qualitative analysis result.

The Application of the Grey Correlation Method in the Principal Component Analysis