Student Name Course

:- Pawan Kumar Lalchand :- Masters Of Business Administration

Project Supervisor :- Dr.Chandra Subject Subject Date VU id Number :- Business Statistics ::Assignment 2 06.06.07

:- 3740208

Discriminant
Analysis Case Processing Summary Unweighted Cases Valid Excluded Missing or out-of-range group codes At least one missing discriminating variable Both missing or out-of-range group codes and at least one missing discriminating variable Total Total N 170 0 0 Percent 100.0 .0 .0

0 0 170

.0 .0 100.0

Group Statistics Valid N (listwise) Unweighted Weighted 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000

Subscriber 0

Total

Age Income Leisure Marital Profession Sex Age Income Leisure Marital Profession Sex Age Income Leisure Marital Profession Sex

Mean 31.59 46.89 3.01 .53 .22 .66 36.43 52.68 10.64 .65 .19 .73 34.26 50.09 7.23 .59 .21 .70

Std. Deviation 4.792 7.355 3.096 .503 .419 .478 5.073 7.049 4.217 .480 .396 .444 5.492 7.725 5.338 .493 .406 .460

Tests of Equality of Group Means Wilks' Lambda .807 .860 .493 .985 .998 .993 F 40.078 27.238 173.004 2.630 .264 1.155 df1 1 1 1 1 1 1 df2 168 168 168 168 168 168 Sig. .000 .000 .000 .107 .608 .284

Age Income Leisure Marital Profession Sex

Pooled Within-Groups Matrices Correlation Age Income Leisure Marital Profession Sex Age 1.000 -.036 -.077 -.254 .090 -.026 Income -.036 1.000 -.089 -.148 -.099 .244 Leisure -.077 -.089 1.000 .053 .040 .067 Marital -.254 -.148 .053 1.000 -.288 -.002 Profession .090 -.099 .040 -.288 1.000 -.013 Sex -.026 .244 .067 -.002 -.013 1.000

Conclusion: From the group statistic table, we can see that a significant large differences in mean values for age, income and leisure between the 2 groups. It indicates that (age, income and leisure) are useful indicators of purchase behavior. From the sig. values in the Test of Equality of Group Means table, the characteristics for age, income and leisure are significant (sig. value =0.000 < 0.05). Hence we can reject null hypothesis and conclude there is a significant relationship between the 3 factors (age, income and leisure) and purchase behavior.

Analysis 1 Summary of Canonical Discriminant Functions

Eigenvalues Function 1 Eigenvalue % of Variance 1.732a 100.0 Cumulative % 100.0 Canonical Correlation .796

a. First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda Test of Function(s) 1 Wilks' Lambda .366 Chi-square 165.805 df 6 Sig. .000

Standardized Canonical Discriminant Function Coefficients Function 1 .513 .460 .844 .250 .006 -.091

Age Income Leisure Marital Profession Sex

Structure Matrix Function 1 .771 .371 .306 .095 .063 -.030

Leisure Age Income Marital Sex Profession

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

Structure Matrix Function 1 .771 .371 .306 .095 .063 -.030

Leisure Age Income Marital Sex Profession

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

Canonical Discriminant Function Coefficients Function 1 .104 .064 .225 .510 .015 -.199 -8.549

Age Income Leisure Marital Profession Sex (Constant)

Unstandardized coefficients

Functions at Group Centroids Function 1 -1.455 1.176

Subscriber 0 1

Unstandardized canonical discriminant functions evaluated at group means

Classification Statistics
Classification Processing Summary Processed Excluded 170 Missing or out-of-range group codes At least one missing discriminating variable 0 0 170

Used in Output Prior Probabilities for Groups

Subscriber 0 1 Total

Prior .500 .500 1.000

Cases Used in Analysis Unweighted Weighted 76 76.000 94 94.000 170 170.000

Classification Results

Original

Count %

Subscriber 0 1 0 1

Predicted Group Membership 0 1 74 2 9 85 97.4 2.6 9.6 90.4

Total 76 94 100.0 100.0

a. 93.5% of original grouped cases correctly classified.

Using Discriminant function: (i) Group = -8.549 + 0.104age + 0.064income + 0.225leisure + 0.510marital + 0.015profession -0.199gender Group = -0.515 (ii) From functions at Group Centroids table, the mean of the 2 groups are: (-1455 + 1.176)/2 = -0.1395 For the group value of -0.714, he is likely to be a non subscriber.

Factor Analysis
Correlation Matrix Correlation Relax Informative Current Cheaper Mode Payment Useful Relax 1.000 .878 .808 .038 -.020 -.049 -.087 Informative .878 1.000 .730 .000 -.100 -.045 -.090 Current .808 .730 1.000 .094 .059 .000 -.003 Cheaper .038 .000 .094 1.000 -.103 .362 -.139 Mode -.020 -.100 .059 -.103 1.000 .037 .783 Payment -.049 -.045 .000 .362 .037 1.000 -.046 Useful -.087 -.090 -.003 -.139 .783 -.046 1.000

Communalities Relax Informative Current Cheaper Mode Payment Useful Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .924 .874 .832 .683 .897 .698 .884

Extraction Method: Principal Component Analysis.

Total V ar ian c e E x plain ed In itia l E ig e n va lu e s E xtr a ctio n S u m s o f S q u a re d Lo a d in g s R o ta tio n S u m s o f S q u a r e d Lo a d in g s To ta l % o f V a r ia n c eC u m u la tive % To ta l % o f V a ria n ceC u m u la tiv e % To ta l % o f V a ria n ceC u m u la tive % 2.6 31 37 .5 9 1 37 .5 9 1 2.6 31 37 .5 9 1 37 .5 9 1 2.6 1 6 37 .37 6 37 .37 6 1 .8 1 9 25 .9 8 9 6 3.5 8 1 1 .8 1 9 25 .9 8 9 6 3.5 8 1 1 .8 0 4 25 .7 7 8 6 3.1 5 4 1 .34 1 1 9 .1 6 1 8 2.7 4 2 1 .34 1 1 9 .1 6 1 8 2.7 4 2 1 .37 1 1 9 .5 8 8 8 2.7 4 2 .6 28 8 .9 6 8 9 1 .7 1 0 .27 3 3.9 0 3 9 5 .6 1 3 .20 8 2.9 6 7 9 8 .5 8 1 .0 9 9 1 .4 1 9 1 0 0 .0 0 0

Component 1 2 3 4 5 6 7

E xtra c tio n M e th o d : P rin c ip a l C o m p o n e n t A n a ly sis.

Scree Plot

3.0

2.5

2.0

1.5

u l a v n e g i E
1.0 0.5 0.0 1 2 3 4 5 6 7

Component Number

Component Matrix

Relax Informative Current Cheaper Mode Payment Useful

1 .956 .932 .892 .089 -.125 -.033 -.171

Component 2 .098 .052 .168 -.315 .907 -.158 .912

3 -.014 -.057 .093 .759 .242 .820 .151

Extraction Method: Principal Component Analysis. a. 3 components extracted.

Rotated Component Matrix Component 2 -.038 -.089 .065 -.126 .947 .056 .936

Relax Informative Current Cheaper Mode Payment Useful

1 .961 .929 .907 .053 .001 -.046 -.044

3 -.015 -.046 .070 .815 .007 .833 -.083

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations. Component Transformation Matrix Component 1 2 3 1 .991 .136 .010 2 -.134 .960 .248 3 .024 -.247 .969

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

Conclusion: The 3 factors are Social (relax, inform and current), Convenience (mode and useful) and Cost (cheap and payment).

Discriminant
Analysis Case Processing Summary Unweighted Cases Valid Excluded Missing or out-of-range group codes At least one missing discriminating variable Both missing or out-of-range group codes and at least one missing discriminating variable Total Total N 170 0 0 Percent 100.0 .0 .0

0 0 170

.0 .0 100.0

Group Statistics Valid N (listwise) Unweighted Weighted 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 76 76.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 94 94.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000 170 170.000

Subscriber 0

Total

Mean Age 31.59211 Income 46.89474 Leisure 3.0131579 Marital .5263158 Profession .2236842 Sex .6578947 Social -.3403437 Convenience .3366411 Cost .0053474 Age 36.42553 Income 52.68085 Leisure 10.63830 Marital .6489362 Profession .1914894 Sex .7340426 Social .2751715 Convenience -.2721779 Cost -.0043235 Age 34.26471 Income 50.09412 Leisure 7.2294118 Marital .5941176 Profession .2058824 Sex .7000000 Social .0000000 Convenience .0000000 Cost .0000000

Std. Deviation 4.79215367 7.35496014 3.09620594 .50262469 .41948172 .47756693 .83426926 .78428713 .94156261 5.07256878 7.04854559 4.21684044 .47986214 .39558303 .44421084 1.04149717 1.07408656 1.04986204 5.49183807 7.72473707 5.33829136 .49251268 .40553944 .45961136 1.00000000 1.00000000 1.00000000

Tests of Equality of Group Means Wilks' Lambda .807 .860 .493 .985 .998 .993 .906 .908 1.000 F 40.078 27.238 173.004 2.630 .264 1.155 17.473 17.056 .004 df1 1 1 1 1 1 1 1 1 1 df2 168 168 168 168 168 168 168 168 168 Sig. .000 .000 .000 .107 .608 .284 .000 .000 .950

Age Income Leisure Marital Profession Sex Social Convenience Cost

P ooled W ith in -G r ou ps M atr ic es C o rre la tio n A g e In c o m e Le is u re M a rita l P ro fe s sio n Sex S o cia l C o n v e n ie n c e C ost Age 1 .0 0 0 -.0 36 -.0 7 7 -.25 4 .0 9 0 -.0 26 .20 6 .0 7 2 .0 22 In c o m e -.0 36 1 .0 0 0 -.0 8 9 -.1 4 8 -.0 9 9 .24 4 .0 6 0 .1 8 6 -.0 4 1 Le is u re -.0 7 7 -.0 8 9 1 .0 0 0 .0 5 3 .0 4 0 .0 6 7 -.0 5 2 -.1 24 -.0 1 0 M a rita l P ro fe ssio n -.25 4 .0 9 0 -.1 4 8 -.0 9 9 .0 5 3 .0 4 0 1 .0 0 0 -.28 8 -.28 8 1 .0 0 0 -.0 0 2 -.0 1 3 -.20 4 .0 21 -.0 37 -.0 4 1 -.1 0 8 .1 25 Sex -.0 26 .24 4 .0 6 7 -.0 0 2 -.0 1 3 1 .0 0 0 .1 8 3 .0 6 6 .0 5 2 S o c ia l C o n v e n ie n c e C o s t .20 6 .0 7 2 .0 22 .0 6 0 .1 8 6 -.0 4 1 -.0 5 2 -.1 24 -.0 1 0 -.20 4 -.0 37 -.1 0 8 .0 21 -.0 4 1 .1 25 .1 8 3 .0 6 6 .0 5 2 1 .0 0 0 .1 0 3 .0 0 2 .1 0 3 1 .0 0 0 -.0 0 2 .0 0 2 -.0 0 2 1 .0 0 0

Analysis 1 Summary of Canonical Discriminant Functions

Eigenvalues Function 1 Eigenvalue % of Variance 1.959 a 100.0 Cumulative % 100.0 Canonical Correlation .814

a. First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda Test of Function(s) 1 Wilks' Lambda .338 Chi-square 177.353 df 9 Sig. .000

Standardized Canonical Discriminant Function Coefficients Function 1 .460 .484 .778 .285 .005 -.130 .256 -.261 .050

Age Income Leisure Marital Profession Sex Social Convenience Cost

Structure Matrix Function 1 .725 .349 .288 .230 -.228 .089 .059 -.028 -.003

Leisure Age Income Social Convenience Marital Sex Profession Cost

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.
Canonical Discriminant Function Coefficients Function 1 .093 .067 .207 .582 .013 -.283 .269 -.273 .050 -8.204

Age Income Leisure Marital Profession Sex Social Convenience Cost (Constant)

Unstandardized coefficients

Functions at Group Centroids Function 1 -1.547 1.251

Subscriber 0 1

Unstandardized canonical discriminant functions evaluated at group means

Classification Statistics
Classification Processing Summary Processed Excluded 170 Missing or out-of-range group codes At least one missing discriminating variable 0 0 170

Used in Output Prior Probabilities for Groups

Subscriber 0 1 Total

Prior .500 .500 1.000

Cases Used in Analysis Unweighted Weighted 76 76.000 94 94.000 170 170.000

a Classification Results

Original

Count %

Subscriber 0 1 0 1

Predicted Group Membership 0 1 74 2 9 85 97.4 2.6 9.6 90.4

Total 76 94 100.0 100.0

a. 93.5% of original grouped cases correctly classified.

Conclusion: From the Eigenvalues table above, the percentage of variation in buying behaviour shown by discriminant function is 66.3 which is an improvement on the discriminant analysis where no factors are included in which the percentage of variation in buying behavior showed by discriminant function was 63.4.