| Discriminant Analysis is
a type of Multivariate
Analysis. In discriminant analysis
there is one output and it is categorical.
The inputs are continuous variables :
The purpose is to understand how to use
the input variables to differentiate between
the outputs.
For example, you may be trying to determine
the factors that make it likely that customers
will default on a loan (two categories,
default or not). The inputs might be their
annual income, age, length at present employment
and the amount of the loan.
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