The Linear Combinations of Independent Variables Developed by Discriminant Analysis

question 31

Multiple Choice

The linear combinations of independent variables developed by discriminant analysis that will best discriminate between the categories of the dependent variable are _____.

• A) discriminant functions
• B) discriminant scores
• C) characteristic profiles
• D) correlation coefficients
• E) beta weights

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Definitions:

Plowback Ratio

The proportion of earnings that a company reinvests into its business rather than distributing to shareholders as dividends, indicating its growth strategy.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Plowback Ratio

The proportion of earnings retained by a company after dividends have been paid, often reinvested in the business for growth.

P/E Ratio

The P/E Ratio (Price-to-Earnings Ratio) is a metric used to value a company by dividing its current share price by its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.