Discriminant Analysis

Discriminant Analysis - Discriminate Analysis Is useful...

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Discriminate Analysis Is useful when you have several continuous independent variables and, as in logistic regression, an outcome or dependent variable that is categorical. The dependent variable can have more than two categories. For the sake of simplicity, we will limit our discussion to the case of a dichotomous dependent variable here. Discriminate analysis is useful when you want to build a predictive model of group membership based on several observed characteristics of each participant. SPSS can create a linear combination of the predictor variables that provides the best discrimination between the groups. Discriminate function analysis is used to determine which variables discriminate between two or more naturally occurring groups. For example, an educational researcher may want to investigate which variables discriminate between high school graduates who decide (1) to go to college, (2) to attend a trade or professional school, or (3) to seek no further training or education. For that purpose the researcher could collect data on numerous variables prior to students' graduation. After graduation, most students will naturally fall into one of the three categories. Discriminate Analysis could then be used to determine which variable(s) are the best predictors of students' subsequent educational choice. EXAMPLES For example, a graduate admissions committee might divide a set of past graduate students into two groups: students who finished the program in five years or less and those who did not. Discriminate function analysis could be used to predict successful completion of the graduate program based on GRE score and undergraduate grade point average. Examination of the prediction model might provide insights into how each predictor individually and in combination predicted completion or non-completion of a graduate program There are several purposes for DA and/or MDA: To classify cases into groups using a discriminate prediction equation. To test theory by observing whether cases are classified as predicted. To investigate differences between or among groups. To determine the most parsimonious way to distinguish among groups.
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This note was uploaded on 06/30/2011 for the course ECO 4701 taught by Professor Ahmed during the Spring '11 term at Andhra University.

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Discriminant Analysis - Discriminate Analysis Is useful...

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