Although discriminant analysis works well for discriminating among known groups of a dependent variable,it cannot be used reliably for predicting into which of the pre-established groups a new set of items will fall when the group membership of those items is not already known.

Question

Quizplus · Accepted Answer

One of the uses of discriminant analysis is classification/prediction.That is,given a new set of items (e.g.,customers,products,firms)whose group membership is not known,into which of the pre-established groups are they likely to fall?

Although Discriminant Analysis Works Well for Discriminating Among Known Groups