Discriminant Functions Are Linear Combinations of the Predictor or Independent

question 53

True/False

Discriminant functions are linear combinations of the predictor or independent variables,which will best discriminate between the categories of the criterion or dependent variable (groups).

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Definitions:

Circular-Flow Model

A diagram that traces the flow of resources, products, income, and revenue among economic decision makers.

Households

Individuals or groups of people living together as a single unit, making economic decisions regarding consumption, savings, and labor supply.

Resource Market

A market where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.

Macroeconomists

Economists who study broad aggregates and systemic phenomena in the economy, including inflation, total employment, and economic growth.