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Multivariate Statistics Discriminant Function Analysis MANOVA Discriminant Function Analysis You wish to predict group membership from a set of two or more continuous variables. Example: The IRS wants to classify tax returns as OK or fraudulent. The have data on many predictor variables from audits conducted in past years. The Discriminant Function Is a weighted linear combination of the predictors The weights are selected so that the two groups differ as much as possible on the discriminant function. Eigenvalue and Canonical r Compute a discriminant score, Di, for each case. Use ANOVA to compare the groups on Di SSBetween Groups / SSWithin Groups = eigenvalue Classification The analysis includes a classification function. This allows one to predict group membership for any case on which you have data on the predictors. Those who are predicted to have submitted fraudulent returns are audited. Two or More Discriminant Functions You may be able to obtain more than one discriminant function. The maximum number you can obtain is the smaller of The number of predictor variables One less than the number of groups Each function is orthogonal to the others. The first will have the greatest eigenvalue, the second the next greatest, etc. Labeling Discriminant Functions You may wish to name these things you have created or discovered. As when naming factors from a factor analysis, look at the loadings (correlations between Di and the predictor variables) Look at the standardized discriminant function coefficients (weights). Predicting Jurors’ Verdict Selections Poulson, Braithwaite, Brondino, and Wuensch (1997). Subjects watch a simulated trial. Defendant accused of murder. There is no doubt that he did the crime. He is pleading insanity. What verdict does the juror recommend? The Verdict Choices Guilty GBMI (Guilty But Mentally Ill) NGRI (Not Guilty By Reason of Insanity) The jurors are not allowed to know the consequences of these different verdicts. Eight Predicto