Discriminant Analysis

Dr Judith Gomes,
Bhilai Institute of Technology, Durg
Classification of multivariate statistical techniques
Discriminant Analysis
Discriminant analysis is a technique of analyzing data when the
dependent variable is categorical and the independent variables
are interval in nature.

For example, the dependent variable may be choice of a brand

of refrigerator (Brand 1, Brand 2, and Brand 3) and the
independent variables are ratings of attributes of the
refrigerator on a 5-point Likert rating scale.
Objectives of Discriminant Analysis
• Developing a discriminant function or determining a linear combination
of independent variables to separate groups (of dependent variable) by
maximizing between-group variance relative to within-group variance.
• Examining significant difference among the groups in light of the
independent variables.
• Developing procedures for assigning new entrants whose
characteristics are known but group identity is not known to one of the
groups.
• Determining independent variables that contribute to most of the
difference among the groups (of dependent variable).
Discriminant Analysis Model
Discriminant analysis model derives a linear combination of
independent variables that discriminates best between groups on
the value of a discriminant function.
Discriminant analysis model can be presented in the following
form:

where D is the discriminant score; b0, b1, b2,… bn are the

discriminant coefficients; and x1, x2, x3,… xn are independent
variables.
Interpretation
• Low value of Wilk’s Lambda reflects high significance.
• The F-test should show a p-value less than .05.
• Larger the absolute value of standardized coefficients
better the predictive power of variable.
• Classification results
Classification Results
• Classification Matrix also known as Confusion Matrix.
• Model is Good or Bad – Classification Matrix will
decide.
• Classification Matrix closer to 100 means model is
Good.
• Statistical Significance – Wilks Lambda and the
Probability value for the F-test given
• Better predictor and poor predictor – Standardized
coeffiecient.
Thank you