Refer to the previous question. Suppose that Royalty Gold classifies potential sites into three categories: 1-High Profit,
Question:
Refer to the previous question. Suppose that Royalty Gold classifies potential sites into three categories: 1-High Profit, 2-Medium Profit, and 3-Low Profit. Suppose that the first ten sites in the data given previously represent high-profit sites, the next ten observations represent medium-profit sites, and the final ten observations represent low-profit sites. Perform discriminant analysis on these three groups using a pooled covariance matrix and answer the following questions.
a. What are the coordinates of the centroids for the three groups?
b. Create a confusion matrix that summarizes the accuracy of your classification rule on the given data. Overall, how accurate is your classification rule?
c. Suppose that the company analyzes five sites on Milos that produce the following average levels of calavarite, sylvanite, and petzite. Indicate whether the following sites would each be high-, medium-, or low-profit sites according to your discriminantresults.
Step by Step Answer:
Spreadsheet Modeling And Decision Analysis A Practical Introduction To Management Science
ISBN: 167
5th Edition
Authors: Cliff T. Ragsdale