Definition of Statistical Concepts

Definition of Statistical Concepts
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Definition of Statistical Concepts
Discriminant function analysis is a statistical analysis used to determine the classification in categories of a nominal dependent variable using either two or more independent ratio variables. Finding the discriminant helps to determine the classification of a new observation.
Example: to determine the types of food eaten by people in hospitals and a university, a random sample of 100 from both surroundings is taken. In the hospital setup, vegetables and fruits are the major categories, whereas in the university setup chunk food is the most popular. From this illustration, it can be concluded that people who stay in or around learning institutions (or places where there is a tight time schedule), tend to consume more chunk (ready-made) food such as hamburgers, pizzas, hotdogs, and other snacks. In contrast, people in healthcare set ups, or in places where diet is a major concern, tend to consume foods less in fat content and high in immune-boosting nutrients, e.g. fruits and vegetables.
Factor analysis is a statistical process for testing whether a relation exists among variables so that a summary of the original test can be obtained from the combination of the original variables.
Example: A given type of cloth is available only in one color, and sales average around $80,000 in a year. However, the sales of the same cloth increases to $250,000 in a year when the company introduces different color options. From this increase in sales, the company can conclude that having more color options is important for customers. In this case, factor analysis is the comparison of the effect of having multiple color choices versus having one color on sales.
Conjoint analysis is a statistical method usually applied in market research to evaluate how consumers value the different features of a service or product.
Example: to satisfy customers' needs...