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Discriminant Analysis

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- Introduction
- Types of DA
- Assumptions
- Model representation, data type/sample size
- Measurements
- Steps to solve DA problems
- An numerical example
- SPSS commands

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- is a powerful statistical tool used to study the differences between groups of objects
- Here, objects could be
- an individual person or firms, and
- classifying them can be based on prior or posterior factors or characteristics

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Two groups

refer to as two-group discriminant analysis

Its dependent variable is termed as dichotomous

Three or more group

Refer to as multiple discriminant analysis (MDA)

Its corresponding dependent variables are termed as multichotomous

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1) multivariate normality,

uses the normal probability plot approach

uses the most common statistical tests are the calculation of skewness value

2) equal covariance matrices

Use covariance to check their corelations

3) multicollinearity, among independent variables

That is to check independent variables are not correlated to each other

4) Outliers

"the observations with a unique combination of characteristics identifiable as distinctly different from the other observations".

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Data type:

Dependent variables = non-metric format

Indep variables = metric format

Sample size : between 5-20 obs for each independent variables

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- Group categorizations
- Hit ratio
- Discriminating power

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- Used to measure the model fitness
- Is a maximum chance criteria

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Note: We need to compute this value for our original sample size and then compare

to the value that produced by the SPSS; and computer value should not be less than

the formal value in order to claim the significant of fitness of model

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References: refer to “hit ratio” for details

- Step 1: Assess the assumptions
- Step 2: Estimate the discriminant function(s)
and its (their) significance

- Step 3: Assess the overall fit

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You can obtain this paper by clicking Discriminant paper from my web site

- Objective:
- To discriminate the difference practices between the high and low performance of firms practicing TQM is ISF
- Use score of overall satisfaction as a mean for discriminating factor

- Steps:
- Step 1, refer to p 762
- Step 2, refer to p763
- Step 3, refer to p763
- Discussion, you can refer to the “discussion” section

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SPSS Windows

- Steps to compute Discriminant Analysis
- Step 0
- Prior the study of analysis, we need to firstly define a new variable as follows:
- - Define “group” and assign a value of either 0, 1, 2 to them, as 0 as neural
- Step 1
- Select “Analyze”
- Select “Classify”
- Select “Discriminant”
- click “group variable”
- and select “group” variable as above

- click “define range”
- state its max and min ranges
- (this range same as min=1, and max=2 for above case)

- click “Independent”
- select “variables”
- that a group of factors that wish to be clustering

- Click option “use stepwise method”
- select “Statistics”

Learn from iconic base – Pls refer to my website