2. Meaning
• It is used to discriminate which variable (s) discriminate between two or more
naturally occurring groups.
• Appropriate statistical technique when the dependent variable is categorical and
independent variables are quantitative.
• It undertakes as the same task as multiple linear regression by predicting the
outcome.
3. • The discriminant analysis aims at studying the effect of two or more predicting
variable on certain evaluation criterion.
• the evaluation criterion may be good or bad ( while grouping investment based on
ROR) , like or dislike ( while grouping products by consumers in terms of their
flavor) , successful or unsuccessful ( while grouping salesmen in terms of meeting
sales target )
4. Objectives
• Development of discriminant function ( combination of independent variables that
will best discriminate the categories of the dependent variables)
• Determination of which predictor variable contribute to most of the intergroup
differences.
• To evaluate the accuracy of classification
5. Two group and multiple discriminant analysis
• When the criterion variable has two categories, it is two group discriminant
analysis.
• When there is three or more categories it is multiple discriminant analysis.
