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03/15/2011

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5-1
Chapter 5Multiple Discriminant Analysis

5-2
Multiple discriminant analysis
. . . is an appropriatetechnique when the dependent variable is categorical (nominal ornonmetric) and the independent variables are metric. The singledependent variable can have two, three or more categories.
Discriminant Analysis DefinedDiscriminant Analysis Defined
Ex
amples: Gender  Male vs. Female Heavy Users vs. Light Users Purchasers vs. Non-purchasers Good Credit Risk vs. Poor Credit Risk Member vs. Non-Member Attorney, Physician or Professor

WHAT IS MULTIPLE DISCRIMINANT ANALYSIS?
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Discriminantanalysis is a dependence technique that forms
variates
(linearcombinations of metric independent variables), which are used to predict theclassification of a categorical dependent variable.
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Classification is accomplished by a statistical procedure, which derives discriminantfunctions, or variates of the predictor variables, which ma
x
imize the between-group variance and minimize the within-group variance on the discriminantfunction score(s).
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The null hypothesis is that the two or more group means are equal on thediscriminantfunction(s), thus a statistically significant model would indicate thatthe group means are not equal.
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Researchers use multiple discriminantanalysis to help them understand:
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group differences on a set of independent variables
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the ability to correctly classify statistical units into groups or classes
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the relative importance of independent variables in the classification process