Linear Discriminant Analysis using Excel

Linear Discriminant Analysis or Normal Discriminant Analysis or Discriminant Function Analysis is a dimensionality reduction technique commonly used for modelling differences in groups i.e. separating two or more classes. Two criteria used by LDA to create a new axis are-
•Maximize the distance between means of the two classes
•Minimize the variation within each class.
The zip contains 3 files-
1. First sheet explains the technique behind LDA using simple solver without any complex maths
2. Second sheet contains LDA in detail with 3 discrimination rules – Maximum Likelihood, Fisher’s Discriminant, Bayesian Discrimination
3. Application of LDA to credit data
The excel sheets comes accompanying with a PPT explaining all the steps.