Abstract
Discriminant analysis is one of the most common multivariate analysis methods. This analysis has excellent uses in different statistical studies, especially those concerned with classification and forecasting, because of its excellent ability to distinguish between data and classify new observations according to the groups to which they belong based on a particular function called the Discriminant Function. The main objective of this work is to investigate the differentiation analysis for classification and forecasting in financial analysis. In addition, this work aims to use the discriminatory function of classification, forecast the financial impact of a sample of Iraqi banks, and measure the classification error. Also, this work has set out the basic concepts of the classification processes and the conditions and assumptions to be provided for the application of the discriminatory method of analysis. Finally, this study has concluded that the proposed discriminatory function is highly effective in classifying and predicting with an appropriate classification error.
Sarah Jabr Hussein
Muthanna Journal of Administrative and Economic Sciences, 2023,Volume 13, Issue 3, Pages 16-24
DOI:10.52113/6/2023-13-3/16-24
