What Is the Major Difference Between Logistic Regression (LR) and Discriminant

question 8

Multiple Choice

What is the major difference between logistic regression (LR) and discriminant analysis (DA) ?

• A) The number of independent variables is greater in DA.
• B) The dependent variable has two levels in LR and multiple levels in DA.
• C) LR can have multiple outcome levels, whereas DA is more limited.
• D) LR is based on the PPM correlation, and DA is based on the canonical model.

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Definitions:

Journal Entry

A record in the accounting ledger that shows a business transaction, involving a debit to one or more accounts and a credit to another to balance.

Consolidated Financial Statements

Financial reports that display the economic condition, operational outcomes, and cash movements of a parent company and its subsidiary companies as one consolidated entity.

Pooling-of-interests Method

A merger accounting method where the assets and liabilities of merging companies are combined using their book values.

Acquisition Method

An accounting approach used to consolidate the financial statements of two companies when one company acquires control over the other.