In a Two-Group Discriminant Analysis Problem Using Regression, Why Is

question 31

Multiple Choice

In a two-group discriminant analysis problem using regression, why is the midpoint cut-off value used to determine group classification?

• A) Because the value minimizes the absolute misclassification error.
• B) Because the value minimizes the probability of misclassification error.
• C) Because the value represents an equal division between the groups.
• D) Because the value incorporates problem specific knowledge.

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Definitions:

World Bank

An international banking entity that offers financial support and grants to economically challenged countries for the advancement of capital projects.

Lender of Last Resort

An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky.

Less-Developed Nations

Countries with low levels of industrialization, low living standards, and low Human Development Index (HDI) scores.

Industrially Advanced Countries

Nations that have highly developed industries and infrastructure, often exhibiting high standards of living, stable economies, and technological advancements.