Exam 10: Discriminant Analysis

The following questions are based on the problem description, spreadsheet, and the Risk Solver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful (Group 1), marginally successful (Group 2) or not-successful (Group 3) in their graduate studies. The officer has data on 20 current students, 7 successful (Group 1), 6 marginally successful (Group 2) and 7 not successful (Group 3). -Refer to Exhibit 10.2. Based on the RSP output, what percentage of observations is classified correctly?

The following questions are based on the problem description, spreadsheet, and the Risk Solver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful (Group 1), marginally successful (Group 2) or not-successful (Group 3) in their graduate studies. The officer has data on 20 current students, 7 successful (Group 1), 6 marginally successful (Group 2) and 7 not successful (Group 3). -Refer to Exhibit 10.2. Based on the analysis presented in the spreadsheet, what percentage of the observations were correctly classified?

Discriminant analysis (DA) differs from most other predictive statistical methods because the dependent variable is

The following questions are based on the problem description, spreadsheet, and the Risk Solver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful (Group 1), marginally successful (Group 2) or not-successful (Group 3) in their graduate studies. The officer has data on 20 current students, 7 successful (Group 1), 6 marginally successful (Group 2) and 7 not successful (Group 3). -Refer to Exhibit 10.2. What is the verbal test score value of the group centroid for group 3?

In discriminant analysis the averages for the independent variables for a group define the

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. Suppose that for a given observation, the difference between Mahalanobis distances between group 1 and 2 (G1-G2) is big and negative. This means that

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. The straight line distance between two points (X₁, Y₁) and (X₂, Y₂) is calculated as

In a two-group discriminant analysis problem using regression, why is the midpoint cut-off value used to determine group classification?

Multiple discriminant analysis moves away from a regression approach to using a measure of distance. Which of the following characterizes the use of a distance function?

An investor wants to classify companies as being either a good investment, Group 1, or a poor investment, Group 2. He has gathered Liquidity, Profitability and Activity data on 18 companies he has invested in and run a regression analysis. Discriminant Analysis output using Risk Solver Platform (RSP) has also been generated. The data for the problem and the relevant output are shown below. -Refer to Exhibit 10.6. Compute the discriminant score and predicted group for a company with Liquidity = 0.91, Profitability = 0.32 and Activity = 1.39.

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. Suppose that for a given observation, the difference between Mahalanobis distances between group 1 and 2 (G1-G2) is big and positive. This means that

The discriminant score is denoted by

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. What is the quantitative test score value of the group centroid for group 1?

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. What number of observations is classified incorrectly?

An investor wants to classify companies as being a High Risk Investment, Group 1, a Medium Risk Investment, Group 2, or a Low Risk Investment, Group 3. He has gathered Liquidity, Profitability data on 18 companies he has invested in and produced the following spreadsheet. The following Discriminant Analysis output using Risk Solver Platform (RSP) has also been generated. -Refer to Exhibit 10.7. What formulas should go in cells C22:D24 of the spreadsheet?

The following questions are based on the problem description, regression results, and the RiskSolver Platform (RSP) Discriminant Analysis report below. A college admissions officer wants to evaluate graduate school applicants based on their GMAT scores, verbal and quantitative. Students are classified as either successful or not-successful in their graduate studies. The officer has data on 20 current students, ten of whom are doing very well (Group 1) and ten who are not (Group 2). -Refer to Exhibit 10.1. What formula is entered in cell E26 of the spreadsheet to determine the Cut-off Value, assuming that the admissions officer wants to minimize the probability of overlap between the groups?

An investor wants to classify companies as being either a good investment, Group 1, or a poor investment, Group 2. He has gathered Liquidity, Profitability and Activity data on 18 companies he has invested in and run a regression analysis. Discriminant Analysis output using Risk Solver Platform (RSP) has also been generated. The data for the problem and the relevant output are shown below. -Refer to Exhibit 10.6. What formulas should go in cells C22:D23, E4:G24, and F24 of the spreadsheet?

The term in is computed as

A manager wants to classify people as belonging to one of two groups based on two scores. The manager has collected data on four current employees and has performed a regression analysis on the data. The data for the problem and the relevant output are shown below. -Refer to Exhibit 10.4. What is the percentage of observations: a.Correctly classified to a Group? b.Incorrectly classified to a Group? c.Correctly classified to Group 1? d.Correctly classified to Group 2?

The term serves which of the following purposes?