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Erschienen in:
2015 | OriginalPaper | Buchkapitel
14. Discriminant Analysis
verfasst von : Wolfgang Karl Härdle, Léopold Simar
Erschienen in: Applied Multivariate Statistical Analysis
Verlag: Springer Berlin Heidelberg
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Abstract
Discriminant analysis is used in situations where the clusters are known a priori. The aim of discriminant analysis is to classify an observation, or several observations, into these known groups. For instance, in credit scoring, a bank knows from past experience that there are good customers (who repay their loan without any problems) and bad customers (who showed difficulties in repaying their loan). When a new customer asks for a loan, the bank has to decide whether or not to give the loan.