Which of the Following Statements Concerning Discriminant Analysis Is FALSE

Multiple Choice

Which of the following statements concerning discriminant analysis is FALSE?

A) Discriminant analysis is useful in marketing for examining differences between groups.
B) In discriminant analysis the dependent variable is a dichotomy or multichotomy, whereas in regression it is typically interval scaled.
C) A two-group discriminant analysis can be transformed into a regression problem simply by using a 0/1 dummy code for the dependent variable.
D) The degree of correlation among predictors is of concern in both discriminant and regression analysis.
E) The criterion that is satisfied in solving for the discriminant function is the maximization of the ratio of within-group variation to between-group variation.