bankloan.

sav

Usually in regression analysis , the DV will be scale but in discriminant

analysis , the DV will be categorical or binary variable like having YES( 0) / NO
(1)answers and IV’s can be any thing categorical / scale…Similar like
regression equation there will be a equation in discriminant analysis but the
DV will binary / categorical variable.

Case Question : Let us assume , some persons had forwarded the applications
for a loan , then evaluate to which persons loan need to be given.

Last few years database is there with the bank and here 8 IV’s and 1 DV
( Defaulted ones) are there…