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. What is the quantitative test score value of the group centroid for group 1?

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 number of observations is classified correctly?

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 small. 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. What is the verbal test score value of the group centroid for group 1?

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 = 0.80, Profitability = 0.27 and Activity = 1.55.

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. How would you compute the centroids for the two (2) groups?

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 percentage of the observations is classified correctly?

A loan officer wants to determine if people will be late in making loan payments. She has information of 18 current loans including the applicants income, level of assets and whether or not the person has been late on payments. She has performed an analysis on the data using Regression tool in Excel and the Risk Solver Platform (RSP). The data for the problem and the relevant output are shown below. -Refer to Exhibit 10.3. Compute the discriminant score and predicted group for someone with an income of 65 and assets of 11.

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 quantitative test score value of the group centroid for group 2?

Which of the following is not true regarding discriminant analysis?

A counselor wants to classify people as belonging to one of three groups based on two scores. The counselor has collected data on twenty people who are known to be in one of the three groups. The data for the problem are in the following spreadsheet. Output generated using Risk Solver Platform (RSP) is also included. -Refer to Exhibit 10.5. What formulas should go in cells C24:D26 of the spreadsheet?

A counselor wants to classify people as belonging to one of three groups based on two scores. The counselor has collected data on twenty people who are known to be in one of the three groups. The data for the problem are in the following spreadsheet. Output generated using Risk Solver Platform (RSP) is also included. -Refer to Exhibit 10.5. Based on the 20 observations in the model complete the following confusion/classification matrix.

A loan officer wants to determine if people will be late in making loan payments. She has information of 18 current loans including the applicants income, level of assets and whether or not the person has been late on payments. She has performed an analysis on the data using Regression tool in Excel and the Risk Solver Platform (RSP). The data for the problem and the relevant output are shown below. -Refer to Exhibit 10.3. What formulas should go in cells C22:D23 and E4:F24 of the spreadsheet?

The dependent variable _i in the regression equation _i = b₀ + b₁X_1i + b₂X_2i represents

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. Based on the 18 observations in the model complete the following confusion/classification matrix.

The goal of discriminant analysis is

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. Compute the discriminant score and predicted group for someone with Score 1 of 238 and Score 2 of 140.

Which of the following statements is true concerning multiple discriminant analysis distance measures?

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 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 is the quantitative test score value of the group centroid for group 2?