The personnel director of a firm has developed two tests to help determine whether

potential employees would perform successfully in a particular position. To help

estimate the usefulness of the tests, the director gives both tests to 43 employees that

currently hold the position. Table 5 gives the scores of each employee on both tests and

indicates whether the employee is currently performing successfully or unsuccessfully in

the position. If the employee is performing successfully, we set the dummy variable

Group is set equal to 1; if the employee is performing unsuccessfully, we set Group

equal to 0. Let x 1 and x 2 denote the scores of a potential employee on tests 1 and 2.

Perform a discriminant analysis on the data and interpret the result, including the confusion

matrix. Include all required steps in assessing the final model. By trial and error, find the

threshold, which minimizes prediction relative error.