Discriminant Analysis

There are two parts to this question:

9a. Solve W&A Example 8.8 using the data in the textbook for yourself. You should come up with the answer in the textbook. (Use Data WSJ subscribers data.xlsx Download WSJ subscribers data.xlsx under Modules.)

9b. You computed the optimal accuracy of the discriminant analysis in part a. Suppose WSJ wants to use discriminant analysis to maximize its expected revenue. Reformulate the GA model for this objective. Is accuracy the best measure for this?

Solve this new problem with the following data:

ADVERTIZING REVENUE

Predict Pos Predict Neg

Actual Pos 20 0

Actual Neg -15 0