The Goal of Discriminant Analysis Is

question 20

Multiple Choice

The goal of discriminant analysis is

• A) to develop a model to predict new dependent values.
• B) to develop a rule for predicting to what group a new observation is most likely to belong.
• C) to develop a rule for predicting how independent variable values predict dependent values.
• D) none of these.

---

Definitions:

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any accrued interest.

Interest

The cost paid for borrowing money, typically expressed as a percentage of the total amount loaned.

Periodic Inventory

An inventory accounting system where inventory and cost of goods sold are determined at the end of an accounting period based on a physical count.

Defaulted Note

A note or loan for which the borrower has failed to make the agreed-upon payments by the due date.