1. What are the uses of the multivariate normal distribution? Why is it needed?
2. How many discriminant functions may be found signi?cant in classifying an observation into one of four groups?
3. Is it possible that only one discriminant function will be found signi?cant in discriminating among three groups? Explain.
4. What is a hit ratio? Will a hit ratio of 67% be sufficient when one group has 100 observations, another group has 200 observations, and the ratio of these groups is believed to re?ect their ratio in the population? Explain.
5. What is achieved by principal-components analysis? How can it be used as a preliminary stage in factor analysis? What important stages must follow it, and why?
6. In a factor analysis of 17 variables, a solution is found consisting of 17 factors. Comment on the analysis.