Exam 20: Discriminant, Factor and Cluster Analysis

One function of factor analysis is to identify underlying constructs in the data.

The objective of a discriminant analysis is to predict the value of the dependent variable based on the values of the fixed independent variables.

In discriminant analysis, with 'm' groups and 'p' predictor variables, min p,m-1) gives the number of discriminant functions.

In factor analysis each subsequent factor accounts for a) increasing amount of variance in data b) decreasing amount of variance in data c) same amount of variance in data d) none of the above

All factor analysis methods constrain the factors to be uncorrelated.

Factor analysis is usefully employed when there is a need to determine the direction of causality between two or three variables.

Which one of the following is not an objective of discriminant analysis?

An attractive feature of varimax rotation is that it may retain the variance explained, while reducing the number of factors in the solution as compared to principal components analysis).

The variation in variable 3 is shown to be completely explained by the two-factor solution.

After performing a principal components analysis, a researcher finds that the cumulative variance explained by the solution is 0.56.He can increase the explained variance by performing a varimax rotation.

The cutoff score is the criterion score) against which each individual's discriminant score is judged to determine into which group the individual should be classified

Nonhierarchical clustering will produce tighter clusters due to the fact that an object will be admitted into a cluster only if it improves the clustering criterion.

Given multivariate data, cluster analysis techniques seek to identify natural groupings of objects.

The statistical explanation for discriminant analysis is that of maximizing the between-group variance relative to the within-group variance.

A nonhierarchical clustering program is one in which objects are allowed to leave one cluster to join another as clusters are being formed if the clustering criterion will be improved by doing so.

The group mean, in a discriminant analysis, is known as the centroid.

Larger values of Wilks lambda indicate that the group means appear to be different.

A plot of eigenvalues against the number of factors is called a) factor loading b) scree c) factor score d) communality

The amount of variance a variable shares with other variables is called a) communality b) factor loading c) factor score d) none of the above

The ABC Company is involved in trying to segment its market so that it can better design specific marketing programs directed at each segment.One method of segmenting that it might use is cluster analysis.