Although Discriminant Analysis Works Well for Discriminating Among Known Groups

question 69

True/False

Although discriminant analysis works well for discriminating among known groups of a dependent variable,it cannot be used reliably for predicting into which of the pre-established groups a new set of items will fall when the group membership of those items is not already known.

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Definitions:

End-Of-Quarter Payments

Payments that are made at the end of each quarter, typically in a financial or leasing agreement.

Monthly Payments

Regular payments made once a month, commonly in the context of loans, rent, or other agreements.

Present Value

The present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Annuity

A financial instrument providing a steady series of payments to a person, mainly utilized as a source of income for people in retirement.