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Discriminant analysis

• Is a mathematical approach which tries to differentiate between classes, categories or clusters or groups. It is mostly used for Credit Scoring or predicting bankruptcies. It partitions a sample into Yes or No groups, Positive and Negative, or Bullish and Bearish.

• A statistical process that links the probability of default to a specified set of financial ratios.

 
 

Follow this link for all the terms related to analysis.

 
 Embedded terms in definition
 Bearish
Bullish
Credit scoring
Credit
Default
Financial ratio
Probability
 
 Related Terms
 

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