Multiple Discriminant Analysis - Definition
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Accounting, Taxation, and Reporting
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Marketing, Advertising, Sales & PR
- Business Management & Operations
- Economics, Finance, & Analytics
- Professionalism & Career Development
Multiple Discriminant Analysis (MDA) Definition
Multiple discriminant analysis (MDA) is a statistical measure that financial planners use to ascertain the prospective investments when a lot of variables need to be considered. It minimizes the dissimilarity between many variables, and organize them into large groups, where they can be compared with some other variable. Financial analysts use this technique for compressing the variance among securities while screening for many variables. MDA is associated with discriminant analysis that enables to differentiate a data set by assigning it a value that offers the most significant separation.
A Little More on What is Multiple Discriminant Analysis
A financial analyst evaluating various stocks may use multiple discriminant analysis technique so as to emphasize on the data points that influence the decision in picture. It makes it easier to understand the variations and differences among the stocks, and not neglecting them. For instance, a person who chooses volatility and historical consistency as factors while choosing securities, he/she may prefer using MDA approach to rule out other factors including price. In statistical language, multiple discriminant analysis is also known as canonical variates analysis or canonical discriminant analysis. Researchers generally use this approach for analyzing information in several areas.
References for Multiple Discriminant Analysis - MDA
- https://www.investopedia.com Investing Financial Analysis