Abstract
Based on a collection of variables, such as annual income, age, marital status etc., discriminant analysis seeks to distinguish among several mutually exclusive groups, such as good and bad credit risks. The available data are values for cases whose group membership is known i.e. individuals who have already proven to be good or bad credit risks. Discriminant analysis enables us to:
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Identify which of the collected variables are important for distinguishing among groups and
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Develop a procedure for predicting group membership for new cases whose group membership is presently undetermined.
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Aljandali, A. (2017). Discriminant Analysis. In: Multivariate Methods and Forecasting with IBM® SPSS® Statistics. Statistics and Econometrics for Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-56481-4_6
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DOI: https://doi.org/10.1007/978-3-319-56481-4_6
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Publisher Name: Springer, Cham
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