What type of analysis involves businesses classifying people, products, or other tangible items into several categories? (1 point) Responses discriminant analysis discriminant analysis conjoint analysis conjoint analysis factor analysis factor analysis bias analysis bias analysis
The correct answer is cluster analysis.
The type of analysis that involves businesses classifying people, products, or other tangible items into several categories is called discriminant analysis.
The type of analysis that involves businesses classifying people, products, or other tangible items into several categories is called discriminant analysis.
To understand discriminant analysis, you need to know that it is a statistical technique that helps businesses determine which variables discriminate between different groups or categories. It is commonly used to analyze customer preferences, market segments, or any situation where we want to classify or predict group membership.
To perform discriminant analysis, you typically follow these steps:
1. Define the groups or categories you want to classify. For example, if you have a customer dataset, you may want to classify customers into categories like "loyal," "moderate," or "churned."
2. Gather relevant data on the individuals or items you want to analyze. This data could include demographic information, product preferences, purchasing history, or any other variables that might help discriminate between the groups.
3. Choose a suitable statistical model for discriminant analysis. There are different approaches to discriminant analysis, such as linear discriminant analysis (LDA) or quadratic discriminant analysis (QDA), depending on the distribution and assumptions of your data.
4. Apply the chosen discriminant analysis model to the data. This involves calculating discriminant functions or discriminant scores based on the variables you have chosen.
5. Interpret the results. The output of a discriminant analysis typically includes information on the variables that contribute the most to group separation. This information can help businesses understand the characteristics or factors that differentiate between the identified groups.
So, when a business engages in discriminant analysis, they are using this technique to categorize people, products, or other tangible items based on specific criteria or variables. This classification helps businesses make more informed decisions in areas such as marketing, customer segmentation, or product development.