Journal of Advanced Statistics

A Discriminant Function Analysis Approach to Country’s Economy Status

Download PDF (588.5 KB) PP. 125 - 136 Pub. Date: December 19, 2017

DOI: 10.22606/jas.2017.24001

Author(s)

Egbo M.N
Department of Statistics, Federal University of Technology, Owerri, Imo state, Nigeria
Bartholomew D.C^*
Department of Statistics, Federal University of Technology, Owerri, Imo state, Nigeria

Abstract

In this paper, discriminant function analysis was used to classify 68 randomly selected countries to their respective economy status (Weak or Strong) on World Bank website data. The following economic indicators were used as independent variables: Gross Domestic Product (GDP), Ln(Mortality_rate), Ln(Inflation_rate) and Access_to_electricicty. It showed that Ln(Mortality_rate) and Access_to_electricity contributed most to linearly discriminate within the group (economy status) for the two levels (weak or strong) while GDP contributed least with 93.6% sensitivity and 91.2% of cross-validated grouped cases correctly classified.

Keywords

Discriminant Function Analysis, randomly selected, economic indicators, sensitivity

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