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Discriminant Analysis
Discriminant Analysis
D R D E E PA K C H AW L A
NEENA SONDHI
CHAPTER-17
DISCRIMINANT ANALYSIS
RESEARCH
CONCEPTS AND
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7-1
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17-1
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Discriminant
analysis
is
used
to
predict
group
membership.
This technique is used to classify individuals/objects into
one of the alternative groups on the basis of a set of
predictor variables.
The dependent variable in discriminant analysis is
categorical whereas the independent or predictor
variables are either interval or ratio scale in nature.
When there are two groups (categories) of dependent
variable, we have two-group discriminant analysis and
when there are more than two groups, it is a case of
multiple discriminant analysis.
RESEARCH
CONCEPTS AND
SLIDE 17-2
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D R D E E PA K C H AW L A
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whose profile but not the group identity are known to one of the two
groups.
To evaluate the accuracy of classification, i.e., the percentage of
RESEARCH
CONCEPTS AND
SLIDE 17-3
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D R D E E PA K C H AW L A
NEENA SONDHI
RESEARCH
CONCEPTS AND
SLIDE 17-4
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D R D E E PA K C H AW L A
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differentiated?
What are the economic and psychographic variables on which price-
a product be differentiated?
RESEARCH
CONCEPTS AND
SLIDE 17-5
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Where,
Y =
bs =
Xs =
Dependent variable
Coefficients of independent variables
Predictor or independent variables
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CONCEPTS AND
SLIDE 17-6
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RESEARCH
CONCEPTS AND
SLIDE 17-7
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D R D E E PA K C H AW L A
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RESEARCH
CONCEPTS AND
SLIDE 17-8
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D R D E E PA K C H AW L A
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RESEARCH
CONCEPTS AND
SLIDE 17-9
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Group
RESEARCH
CONCEPTS AND
SLIDE 17-10
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D R D E E PA K C H AW L A
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Hit ratio
Maximum vs proportional chance criterion
Cross-validation
Out-of-sample Performance
RESEARCH
CONCEPTS AND
D R D E E PA K C H AW L A
NEENA SONDHI
END OF CHAPTER
RESEARCH
CONCEPTS AND
DR