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20 Cards in this Set

  • Front
  • Back
In discriminant analysis, when would we not interpret the analysis
if the discriminate functions estimated were not statistically significant.
how do you calculate Wilk's lambda
done is SPSS
Wiilk’s lambda statistic
is the product of the univaraite lambda for each function
Wiilk’s lambda statistic: how do you determine the significance level
. The significance level is estimated based on a chi square transformation of the statistic.
If you reject Ho in Wilk's lambda it means
If the null hypothesis is rejected, it indicates significant discrimination and you can proceed to interpret the results
o The value of the coefficient for a particular predictor depends on
the other predictors included in the discriminate function
o The value of the coefficient for a particular predictor indicates
which variable values result in large and small function values and associate them with particular groups
o Generally, predictors with relatively large standardized coefficients are
contribute more the discriminating power of the function, and are therefore more important
o Examining the standardized discriminate function coefficients- given low intercorrelations between the predictors,
one might cautiously use the magnitudes of the standardized coefficients to suggest which variable is most important predictor in discriminating between the groups. And then make the rest of the list of importance accordingly.
o Unstandardized discriminate function coefficients-
can be applied to the raw values of the variables in the holdout set for classification purposes.
structure correlations is also called
canonical or discriminat loadings
structure correlations
these simple correlations between each predictor and the discriminate function represent that variance that the predictor shares with the function. The greater the magnitude of structure correlation, the more important is the corresponding predictor
develop a characteristic profile for each group by
describing each group in terms of the group means for the predictor variables. If the important predictors have been identified, then a comparison of the group means on these variables can assist in understanding the intergroup differences.
characteristic profile
o It would be reasonable to develop a profile of the two groups in terms of the three predictors that seem to be the most important
 The analysis sample is used for what?
the validation sample is used for what?
estimating the discriminate function,
developing the classification matrix
 Discriminate weights-
estimated by using the analysis sample, are multiplied by the values of the predictor variables in the holdout sample to generate discriminate scores for the cases in the holdout sample. The cases are then assigned to groups based on their scores and an appropriate decision rule.
 Classification accuracy achieved by discriminate analysis vs. accuracy obtained by chance
 Classification accuracy achieved by discriminate analysis should be at least 25 percent greater than the obtained by chance
two-group discriminate analysis
When the criterion variable has two categories,
examples of discriminate analysis
• Examples of discriminate analysis:
o In terms of demographic characteristics, how do customers who exhibit store loyalty differ from those who do not?
o Do heavy, medium, and light users of soft drinks differ in terms of their consumption of frozen food?
o What psychographic characteristics help differentiate between price-sensitive and non price sensitive buyers of groceries?
o Do the various market segments differ in their media consumption habits?
o In terms of lifestyles, what are the differences between heavy patrons of regional department store chains and patrons of national claims?
o What are the distinguishing characteristics of consumers who respond to direct mail solicitations?
• The coefficients, or weights (b) are estimated so that
groups differ as much as possible on the values of the discriminate function. This occurs when the ratio of between group sum of squares to within group sum of squares is at its maximum