(a) How would you differentiate among multiple discriminant analysis, regression analysis, logistic

untchick04tm

untchick04tm

Answered question

2022-01-13

(a) How would you differentiate among multiple discriminant analysis, regression analysis, logistic regression analysis, and analysis of variance?
(b) Explain at least two use cases from Marketing where discriminant analysis can be useful. Your answer needs to give the details of the scenario clearly.
(c) Explain all the steps involved in Discriminant Analysis along with a detailed interpretation of the key outs of the model.

Answer & Explanation

Hattie Schaeffer

Hattie Schaeffer

Beginner2022-01-14Added 37 answers

Discriminant analysis is a more stabilized analysis as compared to other analysis techniques. Here data can be categorized into groups.
Using this we can find the relationship between dependent and independent variables. Here dependent variables can be categorized.
sonorous9n

sonorous9n

Beginner2022-01-15Added 34 answers

a).
1. Discriminant analysis is used when the dependent variable is discrete, Whereas regression and ANOVA are used for the continuous dependent variable and logistic regression uses categorical dependent variables.
2. Discriminant analysis is used to find the predicted equations of independent variables. Regression analysis is used to estimate the dependent variable using an independent variable. Logistic regression is used to find the relationship between predictor and categorical dependent variable. ANOVA is used to check the significant difference between three or more independent variables.
3.Discriminant analysis is more stable than other regression analysis
b.
1st scenario: Suppose an agent wants to know the popularity of the product of the company. W can create a questionnaire about their preference of the product and requirement of the product. Using the data, we can find the type of customer who uses the particular company product.
2nd scenario: Suppose we want to find the behaviors of people according to the consumption of drinks. Here we can divide the data according to the consumption of drinks and estimate the behavior. Different brands are the categorized dependent variable.
c.
Step 1: For any analysis first we have to find the objective of the study. Decide the objective of the study, find the independent variable and dependent variable in the data.
Step 2: If the dependent variable has two categories then we use a two-group discriminant analysis. If it has more than three groups then we use multiple discriminant analysis,
Step 3: Find the discriminant function
D=b0+b1x1+b2x2++bnxn
b is the coefficients, D is the discriminant score Here we take n groups and k predictors
Step 3: Check the significance of the discriminant function.
step 4: Interpret the result. If the standard deviation of the predictor is higher, then it plays a lead role in discriminating the ability of the function.

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