The index method

Abstract:

In this paper, a classification method (the index method) is proposed which aims to discriminate between members of two groups (e.g. buyers and non-buyers). The index method is compared with two-group discriminant analysis which is a standard and common technique of exploratory data analysis for selecting relevant variables and specifying the relationships between variables. It is shown how the index methods accounts for the problems met in applying two-group discriminant analysis.

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