The director of the MBA program at Salterdine University wants to use DA to determine which applicants to admit to the MBA program. The director believes that an applicant’s undergraduate grade point average (GPA) and score on the GMAT exam are helpful in predicting which applicants will be good students. To assist in this endeavor, the director asked a committee of faculty members to classify 30 of the current students in the MBA program into two groups:

(1) Good students and

(2) Weak students.

The file Dat10-5.xls on your data disk summarizes these ratings, along with the GPA and GMAT scores for the 30 students.

a. What are the coordinates of the centroids for the good students and the weak students?

b. Use the regression approach to two-group DA to develop a classification rule for predicting to which group a new student will belong. State your classification rule.

c. Create a confusion matrix that summarizes the accuracy of your classification rule on the current students. Overall, how accurate does your classification rule appear to be?

d. Suppose that the MBA director receives applications for admission to the MBA program from the following individuals. According to DA, which of these individuals do you expect to be good students and which do you expect to beweak?

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Name GPA GMAT Mike Dimoupolous Scott Frazier Paula Curry Terry Freeman Dana Simmons 3.2 450 2.97 587 3.95 551 2.45 484 3.26 524 LE