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Discriminant Analysis

  • Discriminant Analysis is used to relate a categorical dependent variable to a series of independent variables. It is similar to Regression Analysis, except instead of predicting the value of the dependent variable, Discriminant predicts the category of the dependent variable. It does this by constructing linear combinations of predictor variables that best distinguish between the groups of the independent variable.

  • This technique has a wide range of applications. For example, identifying the factors that distinguish satisfied customers from dissatisfied, concept acceptors from rejecters, your customers from your competitor’s customers.

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